Reviewing auto stocks for the week and observing the various trends in the automotive market.

When the securities industry is sluggish, there is no need to speculate whether the stock market is doing well or not. The layoff of tens of thousands of people indirectly indicates that investment requires caution. Even with continuous negative news, it is still difficult to affect investment enthusiasm.

The stock market this week remained volatile but showed signs of recovery. As of Friday's close, the Shanghai Composite Index fell slightly by 0.26% to 2,949.93 points, while the Shenzhen Component Index rose slightly by 0.25% to 8,695.55 points. The ChiNext Index rose slightly by 0.51% to 1,655.59 points. The total trading volume for the two markets reached 558.1 billion yuan, consistent with the previous day and still in a lower range. Over 3,000 stocks in the market rose, indicating signs of a comprehensive recovery.

Facing continuous market volatility, mainstream funds have chosen to respond prudently, withdrawing nearly 9 billion yuan to hedge risks. However, they are still adding funds to stocks with significant potential. Northern funds continue to firmly support the market, with a significant inflow of 12.8 billion yuan, of which over 10% flowed into Kweichow Moutai, proving that northern funds still value consumption more.

In the automotive sector, this week was exceptionally active, with major news always coming after the market close. On the evening of July 2, an announcement from Seres stirred up the already volatile stock market.

According to the Seres announcement, its subsidiary, Seres Motors, will acquire 919 Wenjie trademarks and design patents held by Huawei for 2.5 billion yuan. It can be said that once the transaction is completed, Wenjie and Huawei will no longer have much of a relationship, and to some extent, Seres can operate the Wenjie brand independently.

Coincidentally, it seems like the market knew about this announcement in advance, as Seres' stock price fell sharply by 2.55% on July 2, resulting in no significant fluctuations in its stock price on July 3. However, this dynamic still reflected on the stock price, with Seres' stock price falling by a cumulative 4.63% this week, returning to 86.90 yuan.

Puzzlingly, Seres' stock price has been unusually volatile in the past two weeks. From June 17 to 21, two weeks ago, Seres' turnover rate and stock price suddenly surged, with the stock price breaking through the 100 yuan mark from 88.5 yuan, representing a weekly increase of 13.51%. The trading volume also surged from less than 1 million shares to 3 million shares, and the trading amount grew to 30 billion yuan, accounting for 20% of Seres' total market capitalization.

However, from June 24 to 28, Seres' stock price fell sharply by 8.56% without any significant external negative news, returning to around 90 yuan. Meanwhile, the flow of funds in Seres was frequent during this week. According to data, Seres' weekly turnover reached 3.5 million shares, with a trading volume of over 30 billion yuan. Mainstream funds withdrew nearly 3 billion yuan, which were bought up by retail investors.

Theoretically speaking, under Huawei's management, Seres' Wenjie brand has been the fastest-growing brand among new forces this year. Unlike other new forces, Wenjie's sales are concentrated more on the Wenjie M9 model, a large SUV priced over 500,000 yuan that sells over 10,000 units per month.

Under such operating conditions, it is unlikely that Seres' stock price would experience significant fluctuations. At the same time, Wenjie's sales have remained stable at the forefront of the weekly rankings for the past two weeks, indicating a promising situation.

Coincidentally, this week, securities firms began to severely crack down on illegal stock trading by their employees and their relatives, covering a time span of three years. This action aims to combat securities violations with high pressure once again.

Regarding Seres' acquisition of Huawei's trademarks, Huawei has also responded, stating that it will continue to support Seres in manufacturing and selling the Wenjie brand. This action aligns with Huawei's consistent goal of not manufacturing cars but assisting automakers in building good cars.

According to relevant sources, after Huawei transfers the Wenjie trademark to Seres, it will still receive a certain compensation from each sold model, but the specific proportion has not been disclosed.

Regarding Huawei's decision to release the Wenjie trademark, there are varying opinions outside. Some believe that as the number of automakers cooperating with Huawei's HarmonyOS Intelligent Mobility continues to increase, balancing the positions between automakers has become crucial. There is a risk of "three monks and no water to drink," especially after the cooperation with Chery failed to bring sales breakthroughs. HarmonyOS Intelligent Mobility needs to consider increasing factors.

Meanwhile, BAIC and Huawei's cooperation on the Xiangjie S9 model also announced its rear interior this week. This flagship sedan, touted as surpassing Maybach in all aspects, has entered an intensive promotion period, with even greater momentum than the previous Zhijie S7 model. Yu Chengdong even invited Weibo CEO Wang Gaofei to live stream and experience it.

In terms of timing, BAIC's cooperation with Huawei predates that with Chery. They previously jointly launched the Arcfox Alpha S HI version equipped with Huawei's advanced intelligent driving system ADS 1.0, but the market response was mediocre, failing to generate much buzz. This led to a stall in their cooperation until the unveiling of the Xiangjie S9 brought new progress to the outside world.

It is said that the Xiangjie S9 launch conference in August will debut Huawei's ADS 3.0 and feature other Huawei black technologies, which will change the landscape of executive-level luxury sedans. Especially after the successful sales of the Wenjie M9, outside expectations for the Xiangjie S9 have also increased.

This expectation has been reflected in BAIC BluePark's stock price, which has been on an upward trajectory for the past month. This week, it surged by 12.87%, with the stock price reaching 9.12 yuan. The cumulative increase in the past month is nearly 30%. BAIC BluePark has also been favored by mainstream funds, reaching the top of the net inflow of mainstream funds on July 5, with a significant purchase of 476 million yuan, accounting for about 10% of the daily trading volume.

Along with BAIC BluePark, JAC Motors and Changan Automobile are also favored, as they have close cooperation with Huawei in the automotive industry. Although Seres' stock price has fallen, it has not affected the influence of the entire Huawei concept stock. In the capital market, Huawei remains a golden brand, and any association with it is bound to bring significant fluctuations.

As HarmonyOS Intelligent Mobility delivered 194,207 vehicles in the first half of the year, the outside world cannot underestimate Huawei's influence in the automotive industry. Solid sales figures prove that partnering with Huawei can definitely bring benefits. Nowadays, BAIC BluePark has ushered in the "Wenjie" moment in the stock market. Even if the Xiangjie S9 suffers initial losses, it can still allow BAIC to reap significant profits in the capital market.

Note: Some images are sourced from the internet. If there is any infringement, please contact us for removal.