JP Morgan noted that Chinese auto stocks have marked an overall pullback of about 5% over the past two weeks, underperforming the MSCI China Auto Index, which subsided by 3.3%. Several automakers and dealers have released their 2024 results, with most aligning broadly with expectations, though state-owned automakers generally fell short of forecasts.

The broker highlighted two key investment themes for Chinese auto stocks this year: earnings surprises and global market share growth. Among Chinese automakers, JP Morgan considered companies with defendable products and earnings should outperform in the long term.

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Its top picks remained BYD COMPANY (01211.HK)  +0.100 (+0.096%)    Short selling $476.43M; Ratio 31.328%   , XPENG-W (09868.HK)  +1.000 (+1.217%)    Short selling $222.07M; Ratio 22.237%   , and LEAPMOTOR (09863.HK)  +0.450 (+0.782%)    Short selling $19.91M; Ratio 9.300%   , followed by GEELY AUTO (00175.HK)  +0.090 (+0.463%)    Short selling $140.80M; Ratio 22.326%   . The broker stayed cautious on JV brands due to their fading market share among foreign brands. Given persistent pricing pressure across the industry, it maintained a Neutral rating on dealers such as ZHONGSHENG HLDG (00881.HK)  +0.250 (+1.947%)    Short selling $16.77M; Ratio 22.711%   and YONGDA AUTO (03669.HK)  -0.010 (-0.571%)    Short selling $239.85K; Ratio 6.068%   .

The following table shows JP Morgan's latest investment ratings and target prices for some auto makers and dealers:

Shares | Investment Ratings | TPs (HK$)
BAIC MOTOR (01958.HK)  0.000 (0.000%)    Short selling $928.24K; Ratio 4.789%   │Neutral│2 →1.7
GWMOTOR (02333.HK)  +0.010 (+0.065%)    Short selling $71.75M; Ratio 32.910%   │Overweight→Neutral│18 →15
GAC GROUP (02238.HK)  -0.010 (-0.289%)    Short selling $9.45M; Ratio 12.970%   │ Underweight │ 1.3
DONGFENG GROUP (00489.HK)  +0.080 (+0.846%)    Short selling $7.23M; Ratio 6.030%   │Underweight│2.5 →3.9
ZHONGSHENG HLDG (00881.HK)  +0.250 (+1.947%)    Short selling $16.77M; Ratio 22.711%   │Neutral│12
YONGDA AUTO (03669.HK)  -0.010 (-0.571%)    Short selling $239.85K; Ratio 6.068%   │Neutral│1.9 →2.2
SINOTRUK (03808.HK)  -0.060 (-0.237%)    Short selling $8.55M; Ratio 12.945%   │Overweight│ 26
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-10-24 16:25.)

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