May 27, Tuesday

High-Level Voices:
The General Office of the CPC Central Committee and the General Office of the State Council issued the Opinions, proposing the implementation of a budget cycle management system for total wages in eligible state-owned enterprises.

Overall Sentiment:
From the intraday charts, A-shares were dragged down by the Hong Kong market, which made the narrative of the pricing power of core assets gradually shifting southward somewhat awkward.
Another major market shock yesterday came from the electric vehicle (EV) sector. Industry insiders began circulating a narrative of an
"even bigger auto industry crisis," causing widespread market panic and a broad decline in the EV sector. Additionally, BYD initiated a new round of price cuts, triggering a price war that led to mutual accusations within the auto industry, with some labeling others as the
"Evergrande of the auto sector." This round is likely to force the exit of several EV dealers and certain EV brands.