UBS: Chinese automakers have remained under pressure over the past month, but concerns are gradually being reflected

UBS released a research report stating that Chinese automakers have remained under pressure over the past month, but the related concerns are gradually being reflected. The recent clarification of VAT policy, coupled with potential progress in China-EU trade negotiations, should help dispel major uncertainties, and as overseas sales continue to expand, industry leaders may also see a value re-rating. 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 remained under 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 Company Limited (01211), Contemporary Amperex Technology (300750.SZ), and GEELY AUTO (00175), all rated "Buy."