Rising oil prices strengthen the logic of new energy vehicles going global! Huabao Fund Hong Kong Stock Connect Automobile ETF (520780) surges over 2% to reach new listing high!

On the morning of the 17th, the Hong Kong stock market’s new energy vehicle industry chain repeatedly rallied, with Leap Motor leading the gains up over 6%, and Zhejiang Shibao, Geely Auto, Fuyao Glass, Li Auto, and others rising over 4%. In popular ETFs, the Hong Kong Stock Connect Auto ETF Huabao (520780), focused on Hong Kong stocks in the new energy vehicle sector, surged over 2% intraday, hitting a new high since listing!

Orient Securities stated that, under the background of rising oil prices, the cost advantage of new energy vehicles compared to fuel vehicles will continue to expand. Due to cost and energy security considerations, it is expected that countries worldwide will be more inclined to promote and popularize new energy vehicles, thereby accelerating the penetration rate globally. Domestic automakers, especially independent brands, have a competitive edge in the global new energy vehicle market. In the future, they are expected to accelerate their overseas expansion and capture overseas market share, making overseas markets an important growth point for Chinese independent brand automakers.

From an investment strategy perspective, Orient Securities predicts that some high-alpha auto parts companies may resist industry risks and achieve revenue and profit growth. The liquid cooling and gas power generation industry chain, as well as the robot supporting industry chain including Tesla, Figure, Zhiyuan, and Yushu, will continue to receive catalysts.

For those interested in the Hong Kong Stock Connect auto industry chain, it is recommended to focus on the Hong Kong Stock Connect Auto ETF Huabao (520780), which tracks an index focused on complete vehicles, while also covering sub-sectors such as auto parts and industrial metals. Benefiting from high auto consumption, the rapid deployment of L3-L4 intelligent driving, and spillover benefits from robotics, the ETF also holds leading Hong Kong stocks like XPeng, BYD, Li Auto, and Geely, which are scarce in the autonomous driving sector.

Data source: Shanghai and Shenzhen Stock Exchanges, etc.

Risk warning: The Hong Kong Stock Connect Auto ETF Huabao passively tracks the CSI Hong Kong Stock Connect Auto Industry Theme Index, which was based on the date December 30, 2016, and published on July 21, 2022. The annual gains and losses of the CSI Hong Kong Stock Connect Auto Industry Theme Index from 2020 to 2024 are 92.68%, -1.21%, -43.88%, 5.92%, and 5.57%, respectively. The index components are adjusted periodically according to the index rules. Past performance does not predict future results. The index components shown are for display only; individual stock descriptions are not investment advice and do not reflect holdings or trading activity of any fund managed by the manager. The risk level of this fund, as assessed by the fund manager, is R4—medium-high risk, suitable for active investors (C4) and above. All information in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any other statements) is for reference only. Investors are responsible for their own investment decisions. The views, analysis, and forecasts in this article do not constitute investment advice and the fund manager is not responsible for any direct or indirect losses resulting from the use of this content. Investing in funds involves risks; past performance does not guarantee future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest cautiously.

MACD golden cross signals have formed, and these stocks are on a good upward trend!