On July 1, 2026, the "Safety Traffic Regulations for Road Testing and Demonstration Applications of Intelligent Connected Vehicles" issued by the Traffic Management Bureau of the Ministry of Public Security officially took effect. These regulations apply to intelligent connected vehicles with conditional automation (L3), high automation (L4), and full automation (L5) capabilities, establishing China's first nationwide road traffic safety standard for L3-level and above autonomous driving. On the same day, Avatr Technology, which is planning a listing on the Hong Kong Stock Exchange, announced it had formally obtained an L3-level autonomous driving test license. Related road tests have commenced in full on the public test sections already opened in Chongqing, marking a shift in high-level intelligent driving regulation from conceptual guidance to substantive, standardized implementation.
Supportive Industrial Policies Emerge Domestically and Globally
Domestically, the mandatory national standards for L3/L4 are entering the approval process, accelerating the formation of an industrial safety standard system. Globally, the ADS GTR has for the first time established a unified regulatory framework covering the entire product lifecycle. Trading in related ETFs is heating up. The Huatai-PineBridge Intelligent Driving ETF (516520) saw a single-day net inflow of nearly 43 million yuan yesterday (July 6, 2026). Its fund size and shares outstanding have climbed to 1.04 billion yuan and 880 million shares, respectively, representing growth of 61% and 72% year-to-date.
Analysts Outline Key Industry Development Paths
Analysis suggests 2026 is a critical turning point for China's intelligent driving sector, shifting from a "feature competition" to "institutionalized commercial deployment." The industry's focus has clearly switched to three parallel tracks: L2 entering a phase of stringent regulation, L3 moving from pilot programs to limited commercialization, and L4/Robotaxi stepping into a stage of large-scale validation. Sub-sectors across the industrial chain, including Robotaxi, intelligent driving chips, and LiDAR, are expected to benefit significantly.
ETF Tracks Core Intelligent Vehicle Index
It is reported that the Huatai-PineBridge Intelligent Driving ETF (516520) closely tracks the CSI Intelligent Vehicle Theme Index. This index selects companies that provide terminal perception and platform applications for intelligent vehicles, as well as other representative companies benefiting from the intelligent vehicle trend. It covers core segments such as auto parts, electronics, software, and vehicle manufacturing. Its top five industry allocations by the Shenwan classification are semiconductors (26.0%), auto parts (19.5%), passenger vehicles (12.2%), software development (9.4%), and consumer electronics (8.6%).
Fund Manager's ETF Expertise
As one of China's first ETF managers, Huatai-PineBridge Fund has been dedicated to the field of index investment for over 19 years, creating transparent, convenient-to-trade, and low-cost index tools for investors, such as the Huatai-PineBridge CSI 300 ETF (510300) and the Huatai-PineBridge A500 ETF (563360). As of the end of March 2026, the company's ETFs had cumulatively generated profits exceeding 223.4 billion yuan for holders over the preceding two years, making it one of only three public fund companies in the A-share market to achieve cumulative profits of over 200 billion yuan during that period.
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