There was HKD878 million, HKD687.5 million and HKD540.4 million Southbound Trading net inflow to POP MART (09992.HK), TENCENT (00700.HK) and SMIC (00981.HK).

There was HKD450.2 million and HKD6.2 million Southbound Trading net outflow from BABA-W (09988.HK) and XIAOMI-W (01810.HK).

For Southbound Trading of Shanghai-Hong Kong Stock Connect, TENCENT (00700.HK) was the most active stock with highest net inflow of HKD980.5 million, while TRACKER FUND (02800.HK) was the most active stock with highest net outflow of HKD2.4 billion.

For Southbound Trading of Shenzhen-Hong Kong Stock Connect, YOFC (06869.HK) was the most active stock with highest net inflow of HKD302.3 million, while BABA-W (09988.HK) was the most active stock with highest net outflow of HKD463.9 million.

At close, Southbound Trading net outflow totaled HKD0 , representing 33.76% of the total transaction amount of HKD155.99 billion.
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SBP GROUP (01177.HK) announced that Naldemedine (generic name: Naldemedine Tosylate Tablets; brand name: Symproic), a Class 1 innovative drug exclusively licensed by the Group’s subsidiary Chia Tai Tianqing Pharmaceutical Group Co., Ltd. (CTTQ), has been approved for marketing by China’s National Medical Products Administration (NMPA) for the treatment of opioidinduced constipation (OIC) in adults.
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DAWNRAYS PHARMA (02348.HK) announced that the Group’s subsidiary, Fujian Dawnrays Pharmaceutical Co., Ltd., has obtained the approval for drug production and registration for Trazodone Hydrochloride Tablets 50mg and 100mg from the National Medical Products Administration of China, being under type 3 chemical drug and regarded as passing the consistency evaluation. This product is suitable for the treatment of depression and is suitable for patients with or without anxiety.
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CHANGAN AUTOMOBILE (000625.SZ) has been positioning intelligence as the core engine of its transformation and upgrading, while treating safety as an uncompromisable bottom line, Chairman Zhu Huarong said.

Over the next five years, it will invest more than RMB100 billion in this sector and expand its R&D team by 10,000 employees.
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LI AUTO-W (02015.HK)'s 1Q results were broadly in line with market expectations but about 15% below JP Morgan's forecasts. The broker upheld a cautious long-term view on Li Auto, believing that the highly competitive market environment implies limited room for volume and earnings upside surprise.

At the results briefing, management outlined several strategies, including upgrading the product mix. The new L9 and the upcoming L8 will reinforce the high-end SUV positioning, which should help gross margin gradually recover from 2Q onward.

On overseas expansion, the L-series EREV models have entered the Middle East and Central Asia markets, with further expansion into SE Asia starting in May. Battery electric vehicle (BEV) models are set to enter Europe in 2H26, followed by right-hand-drive products launching in Hong Kong and Singapore.

However, JP Morgan noted that several Chinese competitors, including NIO, XPeng, Huawei, Xiaomi, Zeekr and Leapmotor, are launching EREV and BEV products with increasing overlap with Li Auto's core models in terms of pricing, specifications, sales channels and target family buyers. This may weigh on revenue growth momentum, while price competition, promotions and input cost inflation could continue to squeeze profit margins.

The broker maintained its Underweight rating on LI AUTO-W, cutting the Hong Kong-listed shares TP from HKD60 to HKD56, and lowering the TP for Li Auto Inc. (LI.US) ADR from USD15.5 to USD14.
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China's Ministry of Finance (MOF) issued RMB green sovereign bonds in Hong Kong for the first time, with a total issuance size of RMB6 billion. The offering comprises RMB3 billion of three-year green sovereign bonds (final pricing at 1.42%) and RMB3 billion of five-year bonds (final pricing at 1.56%).

The bonds will be listed on the Hong Kong Stock Exchange. The MOF intends to allocate an amount equivalent to the net proceeds from the sale entirely to eligible green expenditures under the central government budget.

David Liao, Co-Chief Executive of Asia and Middle East of HSBC, said the issuance attracted active participation and strong subscription from international investors, fully reflecting global market confidence in China's economic growth potential. The green bond issuance sends a clear message to international investors of China's commitment and continued efforts to advance its green and low-carbon transition.

The Outline of the 15th Five-Year Plan states that China will promote RMB internationalization and expand the use of RMB in international trade and investment and financing. The Ministry's offshore RMB sovereign bond issuance will help establish a pricing benchmark for the RMB market, improve the offshore RMB yield curve, and encourage other issuers to expand RMB bond issuance.
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Hangzhou Warm Core Jia Electronic Technology recently underwent industrial and commercial changes, adding Shanghai Qishan Investment under TENCENT (00700.HK) and others as new shareholders, with registered capital increasing to RMB16.8853 million, Chinese media reported, citing information from Qichacha APP.

Founded in 2014, Hangzhou Warm Core Jia Electronic Technology is engaged in integrated circuit design and development, as well as technology development, technical services and consulting for electronic products and biomedical equipment.
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LI AUTO-W (02015.HK) Chairman and CEO Li Xiang said that competition in the mid-to-high-end smart vehicle segment will essentially be competition in embodied AI over the next three to five years.

The highest technological barriers in the industry and the core factors determining a company's long-term competitiveness will lie in deep co-design of chips and large models, which the group will focus on, the Chairman said.

With LI AUTO-W developing more powerful in-house computing chips and adopting entirely different model deployment approaches and model scales, together with vertically integrated software-hardware capabilities, the traditional practice of poaching talent as a competitive strategy will become ineffective.

In the long run, Li believed that factories, retail stores and users will all require humanoid robots. Therefore, robotics does not belong exclusively to LI AUTO-W nor solely to start-ups. The company envisions humanoid robots achieving large-scale commercialization and industrialization, similar to the electric vehicle sector between 2010 and 2015.

He expects that reaching such a stage will take at least more than three years, or even longer. During this period, many technical challenges remain to be addressed, as there is still no consensus on the technological roadmap for many detailed aspects, all of which need to be resolved.
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The Intelligent Driving 9.0 version powered by LI AUTO-W (02015.HK)'s self-developed Mahe M100 chip achieved a major upgrade compared with version 8.0, Xie Yan, Chief Technology Officer of LI AUTO-W (02015.HK), said. Version 9.0 is the first intelligent driving system fully running on the Group's in-house chip. It is ranked among the first tier in the highly competitive industry, though this marks only the beginning, the CTO said. The Group aims in 2H26 to benchmark its performance against Tesla, Inc. (TSLA.US) FSD Beta version 14.

On international expansion, President Ma Donghui said LI AUTO-W's globalisation strategy is progressing steadily. In overseas markets, the Group is adopting a phased expansion approach, flexibly choosing between establishing subsidiaries to develop dealer networks or appointing exclusive general distributors based on local market size and competitive landscape. It aims to leverage leading local partners to rapidly build an integrated service system covering sales, delivery and after-sales support.

Ma added that LI AUTO-W's brand and products continue to gain recognition in overseas markets. In the Middle East and Central Asia markets, the L-series extended-range models will serve as the main offerings, with official entry into these markets in 3Q26. In 2H26, the Group will also launch the all-electric I6 model in the European market. For right-hand-drive markets, a right-hand-drive version of the Mega will be introduced by the end of this year in core Asia-Pacific regions such as Hong Kong and Singapore.
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AASTOCKS Financial News compiled the latest investment ratings, TPs and views from 7 brokers on LI AUTO-W (02015.HK) (LI.US) as follows:

Brokers | Ratings | TPs | Core Views

CLSA | Outperform | HKD140/ USD36
1Q26 results recorded a net loss due to a higher contribution from entry-level models, inventory clearance and subsidies. Industry headwinds, including weak demand and cost pressures, are expected to continue weighing on its performance.

UBS | Buy | USD23
1Q26 operating loss was in line with expectations. Vehicle gross margin of 6.1% was above prior guidance of around 5%, but below the 16-20% range reported over the past four quarters.

Nomura | Neutral | USD20
1Q26 marked the largest quarterly loss since listing. Weak 2Q guidance; intensifying competition and rising costs suggest a challenging outlook.

BofA Securities | Neutral | HKD86 -> 70/ USD22 -> 18
1Q26 non-GAAP net loss was better than expected. Management expects vehicle gross margin to rebound to 10% in 2Q. TP was lowered to reflect cuts in sales volume and gross margin forecasts.

JP Morgan | Underweight | HKD60 -> 56/ USD15.5 -> 14
1Q earnings were about 15% below expectations. Intensifying competition limits upside to sales and profitability, and the broker maintains a cautious stance.

UOB Kay Hian | Sell | HKD45 -> 40
1Q26 ASP was disappointing, with margin pressure leading to weaker-than-expected results. Earnings are expected to be affected by declining L-series sales, pricing pressure and a deteriorating product mix.

Daiwa | Buy | ---
1Q26 results were weak due to lower ASP. The broker focuses on sales performance of the new L9 model.
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Deliveries of the all-new L9 in 2Q are expected to be around 8,000 units, on the back of initial production ramp-up after launch, LI AUTO-W (02015.HK) President Ma Donghui said.

After full completion of capacity ramp-up in 3Q, the Group is confident that the steady-state monthly sales of the new L9 will steadily exceed the previous average monthly level of the older L9.

Group CFO Li Tie noted that 1Q gross margin was impacted by multiple factors, including model replacement cycles, the upgrade transition from L5 to new models, and the increased sales mix of L6, which was also affected by purchase subsidy policies.

However, with the launch and delivery of the all-new L9, the Group expects gross margin to rebound to 10% in 2Q. On a full-year basis, as the L series model upgrades are completed and product mix continues to optimize, overall gross margin is expected to improve steadily.

Ma supplemented that while the L9 focuses on a flagship six-seater positioning, the new L8 will target the flagship five-seater segment. The two models will form an efficient complement to each other, further consolidating the brand's leading position in the high-end flagship market.

The L8 had its filing completed with the Ministry of Industry and Information Technology in April and is scheduled for official launch and delivery by the end of June.
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Based on the latest monthly data, international market sales of XPENG-W (09868.HK) accounted for nearly 20% of the company's total sales, XPENG-W Vice Chairman and Co-President Brian Gu stated. In comparison, international sales represented only about 10% of global sales last year, indicating that the importance of international operations in the overall sales mix is advancing dramatically.

New models developed for global markets have not yet been officially launched, and the current growth momentum is expected to continue in the coming quarters and throughout the year. In view of this assessment, the group believes maintaining international sales contribution at around 20% is achievable. Meanwhile, the China market is also showing positive growth signals, which will support the company's overall development.

Regarding localized production, Gu noted that the company has established two factories in SE Asia, located in Indonesia and Malaysia, primarily to serve local market demand. In addition, it has formed a partnership with a Magna factory in Austria to produce vehicles for the European market. This year, all three production bases will further expand capacity and gradually commence production of new models. In the future, most products sold by the company in the European market are expected to be locally produced.
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XPENG-W (09868.HK) Vice President of Finance and Accounting Wu Jiaming said the group's overall gross margin in 1Q26 was broadly flat compared with 4Q25. In the meantime, soaring prices of memory chips and increasing battery raw material costs have created certain cost pressures for the group, with part of the impact already reflected in 1Q26. The related cost factors are expected to continue to be reflected in subsequent quarters this year.

He Xiaopeng, Co-founder, Chairman and CEO of XPENG-W, added that following the launch of four global models in 2H26, the company believes its globalization pace will accelerate noticeably in 2027 and 2028, and he expressed strong confidence in this outlook. Previously, the group had only two vehicle models.

This year, the group's R&D investment in the automotive segment is primarily focused on overseas markets. He also expressed strong confidence that overseas market performance will accelerate over the next three years.
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FOSUN PHARMA (02196.HK) announced that it officially signed a strategic cooperation framework agreement with GENRIX (688443.SH). The two parties will establish a long-term, stable and mutually trusting strategic partnership to accelerate the research and development and commercialization of innovative drugs, and jointly enhance their core competitiveness and industry influence.

As the first concrete outcome of this strategic cooperation, FOSUN PHARMA's holding subsidiary Yaoyou Pharmaceutical entered into an exclusive licensing agreement with GENRIX for a licensed product, namely a bispecific antibody drug using velritamig (GR1803) as the sole active ingredient and/or targeting BCMA and CD3 simultaneously as agreed.

Under the agreement, Yaoyou Pharmaceutical will obtain the rights for clinical development, manufacturing and commercialization of GR1803 in the Greater China region (Mainland China and Hong Kong, Macau and Taiwan). The cooperation aims to integrate the advantageous resources of both parties, accelerate the accessibility of this innovative therapy in China, and bring new treatment hope to patients in China.
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XPENG-W (09868.HK) encountered many different logics in the mass production of robots compared to automobiles, said He Xiaopeng, Co-founder, Chairman and CEO. In fact, robot mass production is quite different from that of vehicles.

Since early last year, XPENG has been developing humanoid robot hardware and software in-house, He said. Except for battery cells, which are not yet self-developed, the company is essentially the only player in the industry to achieve full-stack in-house development of humanoid robots.

This has enabled XPENG to realize a high level of integration. He believed that the initial hardware cost structure of robots will resemble that of automobiles, but in the long run, more scalable and economical solutions may emerge. At present, however, the cost structure of robots is quite close to that of a car.

As for future commercialization plans, He said discussions are ongoing. The robot's bill of materials (BOM) is similar to that of a vehicle, so its selling price will definitely be higher than that of a typical car. From a hardware perspective, robots are expected to deliver relatively strong gross margins.
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Robotaxi will present an enormous and entirely new business opportunity in 2028 and beyond, XPENG-W (09868.HK) Co-founder, Chairman and CEO He Xiaopeng remarked. The company is working to commercialize the model in China and globally.

At this juncture, the overall focus is to implement VLA 2.0 in both the China and overseas markets and execute it well. In the China market, the group will leverage its existing vehicle models for rapid research and testing. In 2027, XPENG will launch an economy model to facilitate Robotaxi demonstration and commercial validation.

He noted that XPENG's Robotaxi strategy has two key features. First, the company will focus solely on product development and take commissions, rather than directly engaging in operations, and therefore will work with a large number of partners. Second, XPENG's Robotaxi will primarily target the global market, which he believes holds substantial commercial value for Robotaxi globalization.
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China's State Council recently issued the "Urban Renewal '15th Five-Year' Plan", setting out clear targets, key tasks, major projects and policy measures for urban renewal during the period.

Chinese property developers rallied broadly today (29th). COUNTRY GARDEN (02007.HK) opened 2.39% higher and once hit HKD0.295 at peak. It last quoted at HKD0.26, up 24.4%, with turnover of 1.719 billion shares, involving HKD458 million.

CHINA AOYUAN (03883.HK) opened 6.38% higher and once peaked at HKD0.059. It last quoted at HKD0.055, up 17.02%, with turnover of 9.514 million shares, involving HKD496,000.

CHINA VANKE (02202.HK) opened 0.79% higher and once peaked at HKD2.94. It last quoted at HKD2.87, up 12.99%, with turnover of 74.1125 million shares, involving HKD209 million.

YUEXIU PROPERTY (00123.HK) opened 0.48% higher and once peaked at HKD4.49. It last quoted at HKD4.45, up 6.46%, with turnover of 3.5122 million shares, involving HKD15.4226 million.

KWG GROUP (01813.HK) opened 6.87% higher and once peaked at HKD0.143. It last quoted at HKD0.142, up 8.4%, with turnover of 200,000 shares, involving HKD283,000.
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He Xiaopeng, Co-founder, Chairman and CEO of XPENG-W (09868.HK), said the company is keeping a close tab on the sustainability of the GX model, while believing that GX, as XPENG's flagship model, actually delivers an impressive gross margin.

The group is pushing ahead supply chain support and production capacity ramp-up in full swing, while also aiming to launch high-quality services and products to stabilize long-term delivery performance of the GX model.

He revealed that all new XPENG models will focus on two new priorities starting this year. First it's how to determine configuration and pricing while pursuing appropriate commercial quality, which is one of the key initiatives launched this year.

Second is that the group does not seek high sales in the initial phase followed by a decline later. Instead, it aims for more stable sales, and will introduce a new system for modular supply chain management, capacity ramp-up and supply chain security.
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China Foreign Exchange Trade System (CFETS) announced on Friday (29th) that the central parity of USD/ RMB added 64 bps from the previous day to 6.8176, notching a new high since 14 February 2023.
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BYD COMPANY (01211.HK) unveiled its Xuanji A3 chip at its intelligent strategy event held yesterday (28th). The chip is China's first in-house developed 4nm intelligent driving chip, supporting L3 and L4 autonomous driving.

Three chips combined deliver total computing power of over 2,100 TOPS. Leveraging BYD's self-developed algorithms for deep optimization, computing utilization efficiency has doubled, and the chip has already entered mass production.

Chairman Wang Chuanfu stated that a 4nm automotive-grade intelligent driving chip is equivalent to a 2nm consumer-grade chip in terms of technical difficulty, making development highly challenging.

BYD will proactively assume L3 and L4 safety responsibilities during the L2 phase and will take the lead in providing a one-year safety guarantee for its urban navigation-on-autopilot function.

He said the second half of the intelligentization era is accelerating, with BYD setting three major goals: zero traffic accidents, a super driver and a super assistant.

Wang revealed that BYD currently has a chip R&D team of more than 7,000 staff and has invested over RMB100 billion aggregately in chips.

The company has established four major chip R&D bases and five wafer fabrication plants, mastering seven complete processes from product definition, architecture design and circuit design to wafer manufacturing, packaging and testing.
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