GO
| HSI1 | 24,271.20 | +59.85 | 162.63B |
| HSCEI1 | 8,168.57 | +20.70 | 49.87B |
| Back Zoom + Zoom - Block Traded | |
|
2026-10-12 17:43:50 China and the EU reportedly forged a consensus on exports of Chinese HEVs and PHEVs, planning to roughly halve export volumes over the next few years, while implementation details remain subject to further negotiations, Citi said in a research report. Citi views this as risk mitigation rather than a strong re-rating catalyst, as the consensus helps eliminate tail risks in the short term related to potential EU anti-subsidy investigations and possible tariffs on HEVs. This is positive in the near term for automakers with PHEV exposure such as BYD COMPANY (01211.HK), CHERY AUTO (09973.HK) and SAIC, but also implies a soft cap on sales volumes. Based on EU local production capacity and potential export reduction ratios for FY2026, BYD COMPANY and CHERY AUTO are seen as more defensive. Supply chain companies with EU production capacity, including CATL (03750.HK), FUYAO GLASS (03606.HK), MINTH GROUP (00425.HK), SANHUA (02050.HK), TUOPU GROUP (601689.SH) and XINGYU (601799.SH), also enjoy competitive advantages. ~ AASTOCKS Financial News Website: www.aastocks.com | |