[ET Net News Agency, 11 February 2025] In the early trading session, Hong Kong stocks
surged due to speculation around BYD's (01211) autonomous driving plans and AI
applications, with the Hang Seng Index peaking at 21,682 points, the highest since 8
October of last year. However, the trend reversed mid-session as BYD's performance
declined, dragging down other automotive stocks. Gambling and consumer stocks also fell,
leading to a decline in the index, which closed at 21,395 points, down 126 points (0.6%),
with a turnover exceeding HKD 122.7 billion. The Hang Seng China Enterprises Index
reported 7,888 points, down 58 points (0.7%), while the Hang Seng Tech Index stood at
5,204 points, down 82 points (1.6%).

"Lee Wai Kit: Dollar's movement before U.S. inflation data will impact Hong Kong stocks"

U.S. President Trump announced a new 25% tariff on all imported steel and aluminium,
with further announcements expected in the coming days regarding reciprocal tariffs. This
morning, Mainland China stock markets showed a downturn, causing Hong Kong stocks to drop
after an initial rise of over 100 points. The Hang Seng Index faced selling pressure after
approaching resistance levels from last October, with a drop of about 100 points by
midday.
Lee Wai Kit, a director of the Brokerage Department of TF International Securities, told
ET Net News Agency that the recent RSI for the Hang Seng Index has indicated overbought
conditions, so today's decline following A-shares is not surprising. He anticipates that
the index will attract some investment around the 21,000 level; however, with upcoming
U.S. inflation data, if the dollar remains strong, the index may test significant support
at 20,500.

"God's Eye lacks uniqueness, unlikely to shock other automakers"

The highly anticipated BYD advanced autonomous driving conference was held last night,
announcing that the "God's Eye" system will be standard on models priced above RMB
100,000, with most models below that price also featuring it. The cheapest model, the "Sea
Gull," priced at RMB 69,800, will also offer the "God's Eye" experience. This announcement
initially drove BYD's stock to a new high of RMB 345 but subsequently fell due to market
pressures, with other automotive stocks also declining, such as Geely (00175), which
dropped by 10% by midday.
While the widespread availability of "God's Eye" in models above RMB 100,000 provides a
competitive edge, Lee Wai Kit questioned whether BYD's technology has truly reached a
"DeepSeek" moment. He believes that while the system's popularity may enhance consumer
preference for BYD, its technological uniqueness is limited. The market had anticipated a
qualitative advancement in BYD's technology, progressing to L3 and L4 levels, but it
currently reflects a quantity-focused approach, falling short of earlier expectations.
BYD's stock now fully reflects this news, and future sales will depend on whether these
factors can stimulate new car sales.
Regarding other automotive stocks, Lee Wai Kit noted that "God's Eye" lacks significant
uniqueness, focusing mainly on road conditions and automated parking. He expects other
manufacturers to easily develop similar technologies, suggesting the impact may be less
significant than currently reflected in stock prices.

"Black Sesame's future depends on major shareholder actions"

As a newly emerging BYD concept stock, Black Sesame (02533) has seen volatile price
movements following the lifting of a lock-up period. Lee Wai Kit stated that attention
should be paid to how much revenue BYD contributes moving forward. Fortunately, the
company showed strong performance last year, turning a profit of over RMB 1.1 billion in
the first half. Investors should watch for potential large sell-offs by major shareholders
after the lock-up period; absent any related news, the stock may continue to rebound next
week. Otherwise, it may still face downward adjustments.