Source: Caixin.

Author: Hu Jiarong. During the election year in the United States, what has been the historical performance of the Hong Kong stock market? What is the institution's view of the future trend of the Hong Kong stock market? 2024 is the largest election year in history. According to Time's report, more than 60 countries/regions globally will hold presidential or legislative elections, involving an estimated population of 4 billion. Among them, the upcoming US presidential election on November 4th will be the center of attention globally. Hang Seng Index company pointed out that since 1977, the average performance of US stocks and Hong Kong stocks in the year prior to the election was the best. It is worth noting that in the election year, both markets showed better average performance in years with Democratic presidents. For investors seeking to measure the performance of Hong Kong blue-chip stocks and the possible revaluation of the Hong Kong stock market during the US election period, the Hang Seng Index will be the ideal choice for the Hong Kong stock market index. Since 1977, the average performance of the Hang Seng Index in the US election year and the year after has risen by 14% and 16%, respectively.

Yesterday, the Tesla AI team released a product roadmap, which expects to launch fully autonomous driving in China and Europe in the first quarter of 2025, pending regulatory approval.

Since 2016, Elon Musk has been committed to the research and development of Tesla's Full Self-Driving (FSD) technology. By 2024, Tesla released the FSD V12 version and conducted large-scale promotion in North America. FSD V12 uses a new 'end-to-end' neural network architecture, where the entire process from perception to vehicle control is completed by this network, making computing power and data training key to the technological development.

Currently, FSD technology is steadily developing. The latest 12.5.2 version has five times the parameters of the previous 12.4 version. It integrates the technology for highway and city driving, providing a smoother driving experience. Specific improvements include more natural and timely lane change decisions, driver monitoring relying solely on the visual system, full self-driving on highways, and FSD functions applied to Cybertruck models.

Tesla is also continuing to invest in building AI supercomputing centers to meet the massive computing power required for training autonomous driving technology. As of the second quarter of 2024, Tesla's self-built supercomputing center's AI computing power has exceeded 0.04 million images.$NVIDIA (NVDA.US)$The equivalent computing power of the H100 GPU is expected to reach nearly 0.09 million units by the end of the year.

Musk previously predicted that in order to meet the requirements of global regulatory agencies, Tesla's FSD testing mileage needs to reach 6 billion miles. According to Tesla's latest financial report, as of the end of the second quarter, the cumulative driving mileage of FSD has exceeded 1.6 billion miles. The company also stated that by the end of the year, FSD's driver intervention-free driving mileage will surpass human drivers, and it is confident in achieving unsupervised L5 level autonomous driving next year.

Ping An Securities further stated that the entry of FSD into China may become a "big fish" in the domestic autonomous driving field, accelerating the landing process of advanced smart driving in China, and leading car companies or suppliers in the advanced smart driving field will benefit more.

Which Hong Kong stocks are expected to benefit?

$BIDU-SW (09888.HK)$Baidu has in-depth research and layout in the field of autonomous driving technology. In addition, there have been reports that Tesla will cooperate with Baidu in the areas of maps and navigation.

$NEXTEER (01316.HK)$Nexteer specializes in providing steering and powertrain systems, advanced driver assistance systems (ADAS), and autonomous driving (AD) solutions for auto manufacturers. The introduction of Tesla FSD may increase the demand for such systems.

$ZHEJIANG SHIBAO (01057.HK)$: Zhejiang Shibao's products include intelligent steering systems and wire-controlled steering systems, which are crucial for achieving autonomous driving.

Editor/Rocky