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)  -1.500 (-1.220%)    Short selling $1.16B; Ratio 47.087%   , XPENG-W (09868.HK)  -4.850 (-6.558%)    Short selling $1.50B; Ratio 35.145%   , and LEAPMOTOR (09863.HK)  -0.950 (-1.645%)    Short selling $27.97M; Ratio 6.397%   , followed by GEELY AUTO (00175.HK)  -0.200 (-1.215%)    Short selling $174.92M; Ratio 25.400%   . 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)  -0.180 (-1.485%)    Short selling $11.25M; Ratio 26.344%   and YONGDA AUTO (03669.HK)  -0.060 (-2.817%)    Short selling $962.40K; Ratio 9.107%   .

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)  -0.020 (-0.990%)    Short selling $964.13K; Ratio 7.821%   │Neutral│2 →1.7
GWMOTOR (02333.HK)  +0.320 (+2.508%)    Short selling $51.20M; Ratio 10.174%   │Overweight→Neutral│18 →15
GAC GROUP (02238.HK)  -0.030 (-0.997%)    Short selling $23.03M; Ratio 18.275%   │ Underweight │ 1.3
DONGFENG GROUP (00489.HK)  -0.030 (-0.836%)    Short selling $14.82M; Ratio 14.039%   │Underweight│2.5 →3.9
ZHONGSHENG HLDG (00881.HK)  -0.180 (-1.485%)    Short selling $11.25M; Ratio 26.344%   │Neutral│12
YONGDA AUTO (03669.HK)  -0.060 (-2.817%)    Short selling $962.40K; Ratio 9.107%   │Neutral│1.9 →2.2
SINOTRUK (03808.HK)  +0.300 (+1.274%)    Short selling $16.25M; Ratio 12.866%   │Overweight│ 26
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-07-04 16:25.)

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