Daily Investment Strategy
Daily focus：BYD（1211）
The China Association of Automobile Manufacturers (CAAM) has released the latest production and sales data, showing that in February, the production and sales of new energy vehicles (NEVs) reached 888,000 and 892,000 units respectively, representing YoY growth of 91.5% and 87.1%. Domestic sales amounted to 760,000 units, a YoY increase of 92.6% but a MoM decrease of 5%. Export volume was 131,000 units, up 60.5% YoY but down 12.6% MoM. BYD continued to outperformed the industry. In addition, BYD's "Eye of God" intelligent driving system, available in cars priced around RMB 70,000, significantly enhances the market competitiveness of BYD's models, as similar services are not offered by other car manufacturers in the same price range.
The trade conflict between the U.S. and Canada has a reversal surprisingly
The recent US-Canada trade conflict escalated on March 11, 2025, when President Trump announced plans to impose an additional 25% tariff on Canadian steel and aluminum, citing Ontario’s electricity export surcharge, Canada’s dairy import tariffs, and fentanyl concerns. This announcement triggered immediate market volatility, with the S&P 500 falling approximately 1% in early trading. Ontario Premier Doug Ford threatened to cut electricity supplies to the US, while Prime Minister Trudeau called the tariffs “unacceptable.” However, Trump quickly reversed course on the additional 25% tariff after Ontario suspended its planned electricity price hikes, though the previously announced 25% tariffs remain scheduled to take effect on March 12. This abrupt policy reversal highlights the unpredictable nature of current trade relations and creates significant uncertainty for businesses in both countries. Investors should anticipate continued market volatility as trade tensions remain unresolved, with potential implications for supply chains, manufacturing costs, and cross-border commerce, particularly in steel, aluminum, and energy sectors.
Hong Kong Stock Connect recorded a net outflow of HK$4.04bn on Tuesday, of which Alibaba (9988) recorded the largest net inflow of HK$4.17bn; followed by Tencent (0700). The Hang Seng Index Fund (2800) recorded the largest net outflow of HK$12.13bn, followed by the Hang Seng China Enterprises (2828).
Cheung Cho Shing, Joseph is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/ACQ030/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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