In July, automakers released strong momentum in production and sales; the Stock Connect auto sector received capital support, with dual main themes of going global and electrification looking promising.

As of 11:01 on August 3, 2026, the Stock Connect Auto Index stood at 2,087.55 points, up slightly by 0.36%. The 5-day change was 4.51%, with main force net inflows accumulating to 7.094 billion yuan. The 10-day gain reached 5.59%, indicating a strong short-term trend. The top ten constituents are concentrated among leading automakers such as BYD, Geely, Li Auto, and XPeng, with sector momentum relying heavily on the performance of these industry leaders.

On the evening of August 2, the July production and sales reports for listed auto companies were released, showing sales increases in both new energy penetration and overseas export tracks. Specifically, BYD's total sales in July reached 419,200 units, a year-on-year increase of 21.75%. Pure electric and plug-in hybrid models sold evenly, with single-month overseas exports reaching 180,500 units, setting a new record. Growth momentum in overseas markets such as Brazil and the UK remains strong. Great Wall Motor's July sales were 108,100 units, showing a slight year-on-year increase. New energy vehicles accounted for over 30% of its sales, with monthly overseas sales of 62,000 units. Ora sales doubled, while Tank sales saw a slight decline.

Huaan Securities analyzed that, on one hand, by breaking down export regions, power types, and volume-price dynamics, they pointed out that new energy vehicles have become the core driver of export growth and structural upgrading. Europe remains the largest market, while Latin America is growing the fastest. On the other hand, they systematically analyzed how demand reallocates towards mid-to-high-end and pure electric segments after policy shifts lead to tax reductions and technical constraints. They also quantified the impact of price increases in batteries, memory chips, and power devices on the costs of different vehicle models. Furthermore, combining battery capacity per vehicle, new car cycles, and the Total Cost of Ownership (TCO) for new energy heavy trucks, they depicted the incremental gains in electrification. Against the backdrop of pressure on industry profitability, they highlighted their bullish outlook on ultra-luxury tracks with low demand price sensitivity and significant room for domestic substitution, as well as the main theme of going global, which can hedge against domestic demand and cost pressures through high-profit overseas markets.

The Stock Connect Auto ETF Huaxia (159323) closely tracks the CSI Stock Connect Auto Industry Theme Index (931239.CSI). As of 11:01, it rose by 0.27%, with a latest quote of 1.114 yuan. Intraday trading volume reached 113 million yuan, with a turnover rate of 104.58%. This ETF focuses highly on the Hong Kong stock new energy vehicle sector, holding relatively scarce A-share alternatives like Li Auto, XPeng, and Leapmotor among the 'new forces' in auto manufacturing. It also includes smart driving industry chain targets such as Horizon Robotics. Compared to A-share auto theme indices, it has a higher content of smart driving exposure and benefits deeply from the wave of intelligence. (OTC feeder funds: Class A 024144 / Class C 024145)