UBS: Chinese car companies have continued to be pressured over the past month, but concerns are gradually being reflected

The Zhitong Finance App learned that UBS released a research report saying that Chinese car companies have continued to be pressured over the past month, but related concerns are gradually being reflected. The recent clarification of value-added tax policies, along with trade negotiations or progress between China and Europe, will help eliminate the main haze. As overseas sales continue to expand, industry leaders may also face revaluation. The bank has a positive view of the outlook.

According to the data, in September, China's wholesale passenger car sales 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 pointed out that Chinese car companies have continued to be pressured over the past month, reflecting investors' concerns that the EU may impose tariffs on plug-in hybrids and that China may lower the VAT export rebate rate.

In terms of individual stocks, the bank continues to prefer BYD (01211), Ningde Times (300750.SZ), and Geely (00175), which have ratings of “buy”.