L3 autonomous driving vehicles gain market access, triggering a surge of southbound capital into the sector. Stocks like Joyson Elec, Seres Group, Cao Cao Mobility, and MINIEYE saw significant inflows.
During the week (December 15-19), major Hong Kong stock indices declined collectively. The Hang Seng Index fell 1.1%, the Hang Seng Tech Index dropped 2.82%, and the Hang Seng China Enterprises Index decreased by 1.96%. Southbound capital recorded a net inflow of HK$16.274 billion, reversing previous negative trends.
Heavyweight tech stocks received notable inflows. Xiaomi Group-W led with HK$4.101 billion in net purchases, marking its third consecutive week as the top recipient. Meituan-W followed with HK$1.89 billion, while Alibaba-W and Tencent Holdings saw HK$1.11 billion and HK$1.106 billion respectively.
Xiaomi's southbound holdings have risen for 14 consecutive trading days, reaching 4.584 billion shares worth HK$185.846 billion. The Beijing Autonomous Vehicle Annual Report (2024-2025) revealed Xiaomi's L3 autonomous driving test license approval in Beijing, where regular testing continues.
Most active stocks declined during the week. New China Life Insurance led gainers with an 11.52% weekly increase, followed by Yangtze Optical Fibre (9.41%), CICC (7.28%), and Ping An Insurance (2.67%). Hua Hong Semiconductor, Alibaba-W, and Xiaomi Group-W all fell over 3%.
New China Life's A and H shares hit record highs on Friday. The financial regulator recently solicited public opinion on new insurance asset-liability management rules, introducing multiple regulatory indicators to strengthen risk management. The company reported RMB188.85 billion in premium income for the first 11 months, up 16% year-on-year, with continued focus on value transformation and investment optimization.
Autonomous driving concept stocks saw substantial position increases. Eleven stocks recorded over 20% weekly growth in southbound holdings. FWD Group led with 377.84% growth, followed by Chery Automobile (182.27%), Sany Heavy Industry (95.91%), and Joyson Elec (60.69%).
FWD Group, added to Stock Connect on December 8, has seen continuous inflows. The pan-Asian life insurer serves approximately 34 million customers across ten Asian markets.
In terms of Stock Connect ownership ratios, Joyson Elec (8.79%), Cambridge Technology (7.79%), and Yue Yuen Industrial (7.44%) ranked highest among stocks with over 20% weekly growth.
Notably, several autonomous driving-related stocks including Joyson Elec, Seres Group, Cao Cao Mobility, and MINIEYE saw significant position increases. The Ministry of Industry and Information Technology recently approved China's first batch of L3 conditional autonomous driving vehicles, marking a crucial step toward commercialization.
Ping An Securities believes autonomous driving commercialization could accelerate by 2026. While current L3 operation conditions remain restrictive, the approval signals technological and policy progress, laying groundwork for future development.
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