[ET Net News Agency, 18 May 2026] Mainland China's National Bureau of Statistics announced multiple economic data for April, which were worse than expected. Among them, the industrial added value above designated size in April increased by 4.1% year on year, hitting a new low in more than two and a half years. Total retail sales of consumer goods increased by only 0.2% year on year, hitting the lowest in nearly three and a half years. As for fixed asset investment in the first four months, it decreased by 1.6% year on year, turning negative for the first time this year. With external negative factors combined with the still insufficient growth momentum of the Mainland China economy, the HSI fell below the 250 day line (around 25,595), commonly known as the bull bear line, multiple times during the session for the first time since 2 April, but the rise of central enterprise concepts supported that level, and the HSI closed at 25,612 at midday, down 350 points or 1.3%. The Hang Seng China Enterprises Index reported 8,579, down 111 points or 1.3%. The Hang Seng Tech Index reported 4,838, down 102 points or 2.1%. Main board turnover was nearly HKD 161.3 billion, and Southbound Stock Connect temporarily recorded a net inflow of HKD 480 million.
"Nip Chun Pong: The proportion of bull certificates in street stock surged, attracting large players to slash prices"
Major Asia Pacific stock markets followed the decline of European and US stock markets last Friday and generally headed downwards this morning, with Hong Kong stocks once falling below the 250 day line. Nip Chun Pong, he Chief Strategist at Solo Securities, told ET Net News Agency that the HSI had mainly maintained a range between 25,500 and 26,500 for more than a month since 8 April. Last week, taking advantage of the positive earnings announcements from heavyweights Tencent (00700) and Alibaba (09988), especially Alibaba being sought after by investors with its share price once surging 8% after the results announcement, plus the good atmosphere of the talks between Chinese and US heads of state, the HSI broke through its high since the US Iran conflict. However, profit taking emerged and the HSI encountered pressure at high levels, with the gains of over 400 points during Thursday's session being entirely wiped out. Currently, the external trend is weak, and coupled with the uncertain situation in the Middle East, Hong Kong stocks continue to seek a bottom today after falling on Friday.
Nip Chun Pong believes that the weakness of Hong Kong stocks, apart from the lack of positive factors to support them, is also due to the uneven distribution of bull and bear certificates. The ratio of bull certificates in street stock to the total number of bull and bear certificates in street stock rose continuously from 55% on 6 May to a high of 75% last week. During this period, the holdings of bull certificates increased continuously, becoming an incentive for large players to push down the HSI. Today, the HSI plunged directly into the heavy bull certificate zone between 25,500 and 25,599 at its low. If 25,500 cannot be held, pay attention to whether there is support between 25,000 and 25,500. Nip Chun Pong pointed out that since the holdings of bull certificates below 25,000 are not large, unless the situation in the Middle East worsens further, the chance of further falling below 25,000 is relatively small.
"Li Auto's new cars drastically cut prices, share price faces pressure and bottom is expected to be not yet seen"
Li Auto's (02015) brand new generation L9 was officially launched, introducing a total of 2 models. Among them, the Livis version is priced at RMB 509,800, a significant reduction of RMB 5,0000 compared to the pre-sale price of RMB 559,800, while the Ultra version is priced at RMB 459,800, whose pre-sale price was not announced before. The stock once plunged nearly 15% during the session. Nip Chun Pong believes that Li Auto's gross profit margin remained around 20% from 2021 to 2025. Now that car prices have been drastically reduced, it will inevitably put further pressure on the gross profit margin, and whether the group can achieve a profit in the end remains unknown. Currently, the competition in new car sales in Mainland China is fierce, and it is expected that the share price may have a risk of further decline. If the situation in the Middle East worsens further and Hong Kong stocks fall further, Li Auto's share price may not be able to hold at HKD 60.
"Leapmotor's first quarter sales rose but losses still widened, full year profitability remains doubtful"
Leapmotor (09863) announced that the loss attributable to equity holders for the first quarter of this year widened by 2 times to RMB 390 million, compared to a loss of RMB 130 million in the same period last year, mainly due to the decrease in total gross profit and the increase in expenses. During the period, revenue was RMB 10.82 billion, a year on year increase of 8%; the gross profit margin was 9.4%, down 5.5 percentage points year on year. Sales volume in the same period was about 110,000 vehicles, a year on year growth of 25.8%. Leapmotor once plunged 11% during the session, hitting a low of HKD 40.14.
Nip Chun Pong expressed that since Leapmotor recorded a quarterly profit in the second quarter of last year, it has been highly favoured by investors, and its performance in the subsequent two quarters was also decent, turning a profit for the first time annually last year to earn over RMB 500 million. Under the general optimism of the market, this widening of loss by two times caught the market by surprise. Nip Chun Pong emphasised that the widening of Leapmotor's first quarter loss did not come from a decline in revenue; on the contrary, revenue in the first quarter recorded an 8% growth, reflecting that the group's gross profit was under severe pressure, which reversed the market's optimistic sentiment and even raised worries about whether it could achieve a profit for the full year. Nip pointed out that the automotive sector is generally weak at present, and Leapmotor's share price may have to test the March low of HKD 36.4.
"Nip Chun Pong: The proportion of bull certificates in street stock surged, attracting large players to slash prices"
Major Asia Pacific stock markets followed the decline of European and US stock markets last Friday and generally headed downwards this morning, with Hong Kong stocks once falling below the 250 day line. Nip Chun Pong, he Chief Strategist at Solo Securities, told ET Net News Agency that the HSI had mainly maintained a range between 25,500 and 26,500 for more than a month since 8 April. Last week, taking advantage of the positive earnings announcements from heavyweights Tencent (00700) and Alibaba (09988), especially Alibaba being sought after by investors with its share price once surging 8% after the results announcement, plus the good atmosphere of the talks between Chinese and US heads of state, the HSI broke through its high since the US Iran conflict. However, profit taking emerged and the HSI encountered pressure at high levels, with the gains of over 400 points during Thursday's session being entirely wiped out. Currently, the external trend is weak, and coupled with the uncertain situation in the Middle East, Hong Kong stocks continue to seek a bottom today after falling on Friday.
Nip Chun Pong believes that the weakness of Hong Kong stocks, apart from the lack of positive factors to support them, is also due to the uneven distribution of bull and bear certificates. The ratio of bull certificates in street stock to the total number of bull and bear certificates in street stock rose continuously from 55% on 6 May to a high of 75% last week. During this period, the holdings of bull certificates increased continuously, becoming an incentive for large players to push down the HSI. Today, the HSI plunged directly into the heavy bull certificate zone between 25,500 and 25,599 at its low. If 25,500 cannot be held, pay attention to whether there is support between 25,000 and 25,500. Nip Chun Pong pointed out that since the holdings of bull certificates below 25,000 are not large, unless the situation in the Middle East worsens further, the chance of further falling below 25,000 is relatively small.
"Li Auto's new cars drastically cut prices, share price faces pressure and bottom is expected to be not yet seen"
Li Auto's (02015) brand new generation L9 was officially launched, introducing a total of 2 models. Among them, the Livis version is priced at RMB 509,800, a significant reduction of RMB 5,0000 compared to the pre-sale price of RMB 559,800, while the Ultra version is priced at RMB 459,800, whose pre-sale price was not announced before. The stock once plunged nearly 15% during the session. Nip Chun Pong believes that Li Auto's gross profit margin remained around 20% from 2021 to 2025. Now that car prices have been drastically reduced, it will inevitably put further pressure on the gross profit margin, and whether the group can achieve a profit in the end remains unknown. Currently, the competition in new car sales in Mainland China is fierce, and it is expected that the share price may have a risk of further decline. If the situation in the Middle East worsens further and Hong Kong stocks fall further, Li Auto's share price may not be able to hold at HKD 60.
"Leapmotor's first quarter sales rose but losses still widened, full year profitability remains doubtful"
Leapmotor (09863) announced that the loss attributable to equity holders for the first quarter of this year widened by 2 times to RMB 390 million, compared to a loss of RMB 130 million in the same period last year, mainly due to the decrease in total gross profit and the increase in expenses. During the period, revenue was RMB 10.82 billion, a year on year increase of 8%; the gross profit margin was 9.4%, down 5.5 percentage points year on year. Sales volume in the same period was about 110,000 vehicles, a year on year growth of 25.8%. Leapmotor once plunged 11% during the session, hitting a low of HKD 40.14.
Nip Chun Pong expressed that since Leapmotor recorded a quarterly profit in the second quarter of last year, it has been highly favoured by investors, and its performance in the subsequent two quarters was also decent, turning a profit for the first time annually last year to earn over RMB 500 million. Under the general optimism of the market, this widening of loss by two times caught the market by surprise. Nip Chun Pong emphasised that the widening of Leapmotor's first quarter loss did not come from a decline in revenue; on the contrary, revenue in the first quarter recorded an 8% growth, reflecting that the group's gross profit was under severe pressure, which reversed the market's optimistic sentiment and even raised worries about whether it could achieve a profit for the full year. Nip pointed out that the automotive sector is generally weak at present, and Leapmotor's share price may have to test the March low of HKD 36.4.
