UBS: Chinese Automakers Under Pressure for the Past Month, but Concerns Are Gradually Being Priced In

Stock News10-14

UBS has released a research report stating that Chinese automakers have been under sustained pressure over the past month, but the related concerns are gradually being reflected in share prices.

Recent clarity on value-added tax policy, combined with potential progress in China-EU trade negotiations, should help dispel major uncertainties. As overseas sales continue to expand, industry leaders may also see a valuation re-rating, and the bank holds a positive outlook on the sector.

Data shows that China's September passenger vehicle wholesale volume fell 9% year-on-year to 2.55 million units, up 8% month-on-month; retail sales fell 28% year-on-year to 1.6 million units, up 5% month-on-month.

The bank noted that Chinese automakers have been under sustained pressure over the past month, reflecting investor concerns that the EU may impose additional tariffs on plug-in hybrid vehicles and that China may lower the VAT export rebate rate.

On individual stocks, the bank continues to favor BYD (01211), CATL (300750.SZ), and Geely Automobile (00175), all rated "Buy."

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