XPEV MONA L03 set for Jul 2 debut; Kunlunxin reportedly seeking $50bn IPO, topping BIDU | Daily News Recap

0629 ｜Dolphin Focus:

🐬 Macro/Industry

1) Per U.S. officials, the U.S. and Iran agreed to pause mutual strikes and will restart talks in Doha, Qatar on 6/30, with the focus shifting from the nuclear file to safe passage in the Strait of Hormuz. A planned Swiss session was moved due to the deteriorating situation. Recent attacks on merchant vessels in the Strait lifted oil and inflation expectations. The pause should ease the geopolitical premium near term, a positive for global growth stocks.

That said, core frictions over the nuclear issue and regional deployments remain, making any truce fragile. If Doha yields a transit consensus, Energy may stay under pressure while Consumer and Tech rerating continues; if talks break down, another oil spike risk remains.

🐬 Single Stocks

1.$NIO-SW(09866.HK)

Nio opened pre-orders for the ES8 five-seat on Jun 28 and will launch on Jul 9, removing the third row to redesign the cabin and adopting a 900V high-voltage platform with CLTC range of 655 km. The current 6/7-seat starts at RMB 406,800; the five-seat is expected at ~RMB 388,000, or ~RMB 278,800 under BaaS, expanding reach and filling the gap for a five-seat flagship BEV in the RMB 400k segment. The new model should be the H2 volume driver, with solid order upside supporting auto revenue and GPM. A broader lineup helps offset price wars, likely to lift sentiment for high-end pure EVs in HK and validate resilience in the RMB 400k+ BEV market.

2.$NTES(09999.HK)

NetEase said it will complete the switch to a dual-primary listing in HK on Jun 30, removing the ‘S’ suffix and voluntarily ending the grace period early. In FY2025, over 55% of global traded value is expected to occur in HK, triggering HKEX conversion rules. A dual-primary structure decouples from U.S. listing dependency, lowers cross-border regulatory risk, and broadens southbound allocation channels, a net positive for HK liquidity.

4.$BIDU-SW(09888.HK)

BIDU’s chip unit Kunlun Chip plans an HK IPO with a target valuation of about $50bn, while also advancing STAR Market counseling to form an A+H setup. New details vs. prior confidential filing include required paired chip purchases of 3–7x for institutional subscriptions, Tencent as an external client, and external commercialization already exceeding internal demand. The $50bn target is nearly 40% above BIDU’s current ~$35.8bn market cap, reflecting a premium for domestic compute substitution. Note that contacts close to ByteDance said there is ‘no cooperation intent’ for now, so client expansion still needs to be validated. A spin-off would broaden R&D funding, support BIDU’s asset re-rating, and catalyze HK AI chip names.

5.$XPENG-W(09868.HK)

XPeng announced the first MONA-series SUV, L03, to debut in Beijing at 19:00 on Jul 2, with store demos nationwide arriving on Jul 1. It offers both pure EV and range-extended powertrains, positioned as a compact model, and targets the young mass market in China and Europe; He Xiaopeng said it will be ‘under RMB 300k’ with development standards benchmarked to RMB 300k. The pure EV variant features 183 kW and CALB LFP cells; the REEV pairs a 1.5L engine with a 37.2 kWh battery. L03 completes MONA’s entry lineup, hedges against low-price competition, and could add volume and improve unit economics; it also strengthens XPeng’s global product setup, likely lifting sentiment for HK new EV names and supporting H2 deliveries.

🐬 Top Gainers by Sector

A-share: Water & Soft Drinks; Biotechnology; Life Sciences Tools & Services.

HK: Insurance Brokers; Transaction & Payment Services; IT Consulting.

U.S.: Healthcare Info Services; Tires & Rubber; Real Estate Operating Cos.

🐬 Watchlist for Tomorrow

1. China Jun official Manufacturing PMI.
2. U.S. May JOLTS job openings.

Risk disclosure and disclaimer: Dolphin Research disclaimer and general disclosure