BYD Announces Price Increases! ChinaAMC Hong Kong Stock Connect Automotive ETF Surges Over 2% on Heavy Volume

On the morning of April 29, the Hong Kong stock market's new energy vehicle chain showed strength, with BYD COMPANY, Li Auto, and Tianqi Lithium leading gains of over 4%. Among popular ETFs, the ChinaAMC CSI Hong Kong Stock Connect Automotive Industry Thematic ETF (520780), which focuses on Hong Kong-listed new energy vehicles, saw a significant intraday surge of over 2% on noticeably heavy trading volume.

The catalyst for the movement was an official announcement from BYD COMPANY regarding price hikes. Due to a substantial global increase in storage hardware costs, the optional "Celestial Eye" B-laser assisted driving package for certain models under BYD's Dynasty, Ocean, and Fang Cheng Bao networks will see its price increase from 9,900 yuan to 12,000 yuan. This adjustment to the optional package pricing is set to take effect officially on May 1, 2026.

Looking ahead, China Securities (CSC) expressed the view that, at the current juncture, expectations for passenger vehicle domestic demand and sector valuations may have bottomed out. They see structural alpha opportunities in better-than-expected passenger vehicle exports and the accelerated volume growth of high-end new energy vehicles. In terms of valuation potential, they are optimistic about the new growth paradigm driven by Physical AI. The overseas expansion of new energy vehicles is expected to enter a new, strong growth cycle starting in the second half of 2025. Driven by both supply and demand factors under conditions of high oil prices, this cycle is anticipated to be more sustainable, with performance in 2026 potentially significantly exceeding expectations.

For investors looking to gain exposure to the Hong Kong Stock Connect new energy vehicle industry chain, it is recommended to focus on actively traded T+0 instruments such as the ChinaAMC CSI Hong Kong Stock Connect Automotive Industry Thematic ETF (520780). The underlying index concentrates on vehicle manufacturers while also covering segments like automotive parts and industrial metals. It stands to benefit from multiple positive factors, including robust automotive consumption, the accelerated implementation of L3-L4 autonomous driving, and spillover effects from robotics advancements. The ETF holds significant positions in key Hong Kong-listed intelligent driving leaders such as XPeng, BYD COMPANY, Li Auto, and Geely.

It is important to note that the ChinaAMC CSI Hong Kong Stock Connect Automotive Industry Thematic ETF passively tracks the CSI Hong Kong Stock Connect Automotive Industry Theme Index. The index's base date is December 30, 2016, and its release date was July 21, 2022. The index's annual performance from 2020 to 2024 was +92.68%, -1.21%, -43.88%, +5.92%, and +5.57% respectively. The composition of the index's constituents is adjusted according to its methodology rules, and its past performance is not indicative of future results. Any mention of individual stocks is for illustrative purposes only and does not constitute investment advice or indicate the holdings or trading intentions of the fund manager. The fund manager has assessed this fund's risk level as R4 (Medium-High Risk), suitable for Aggressive (C4) and above investors. All information presented is for reference only, and investors are responsible for their own investment decisions. No views, analysis, or forecasts constitute investment advice, and no liability is accepted for any direct or indirect losses resulting from the use of this content. Fund investments carry risks; past performance is not indicative of future results, and the performance of other funds managed by the manager does not guarantee this fund's future performance. Investment in funds should be made with caution.