If China effectively implements its policy to control overcapacity, it could have a positive impact on the stock market and global trade, with certain leading companies in the new energy vehicle and real estate sectors benefiting more, JPMorgan wrote in its report.According to the report, China's overcapacity has already harmed corporate profit margins and valuations. Currently, China's capacity utilization rate is about 74%, lagging behind both the US and the EU. It is anticipated that China's policy to control overcapacity could alleviate deflationary pressures, improve profit margins, and curb China's cheap exports, which will help tame trade friction.Related NewsJPM Expects ST Shr Price Correction in CATL (03750.HK) w/ TP $400/ Rating OverweightJPMorgan expects that CATL (03750.HK) -3.600 (-0.954%) Short selling $15.73M; Ratio 5.473% (300750.SZ) -3.760 (-1.404%) and CHALCO (02600.HK) +0.030 (+0.541%) Short selling $7.49M; Ratio 7.056% (601600.SH) -0.030 (-0.420%) may benefit from industry consolidation.(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-07-16 12:25.) (A Shares quote is delayed for at least 15 mins.)