Fund Flows Unlikely to Favor Chinese Automakers in Short Term

0844 GMT - Short-term fund flows are unlikely to favor Chinese automakers, including BYD, as Beijing could reduce export tax rebates, Citi analysts write in a note. Potential European tariff increases on China EV makers and higher requirements on auto parts localization are weighing on sentiment, they say. Uncertainties on domestic demand and orders in the high season in September and October also weigh, they add. Rising investor sentiment on artificial intelligence might hurt BYD's share price, they add. The market consolidation theme favors opportunities with long cycle of returns, while the market is likely to remain volatile in the short term, Citi says. BYD expects domestic sales to rise by roughly 20,000 units a month on coming flash-charging battery technology, while monthly overseas sales should hold at 180,000 to 200,000 units.