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)  -0.900 (-0.729%)    Short selling $1.02B; Ratio 41.904%   , XPENG-W (09868.HK)  -0.500 (-0.706%)    Short selling $176.74M; Ratio 13.498%   , and LEAPMOTOR (09863.HK)  -1.750 (-2.869%)    Short selling $10.08M; Ratio 1.635%   , followed by GEELY AUTO (00175.HK)  +0.020 (+0.110%)    Short selling $254.49M; Ratio 15.826%   . 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)  -0.320 (-2.671%)    Short selling $30.06M; Ratio 35.051%   and YONGDA AUTO (03669.HK)  +0.020 (+0.893%)    Short selling $1.27M; Ratio 11.991%   .

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)  -0.010 (-0.474%)    Short selling $3.44M; Ratio 19.063%   │Neutral│2 →1.7
GWMOTOR (02333.HK)  -0.200 (-1.515%)    Short selling $27.59M; Ratio 16.697%   │Overweight→Neutral│18 →15
GAC GROUP (02238.HK)  -0.040 (-1.299%)    Short selling $12.94M; Ratio 24.285%   │ Underweight │ 1.3
DONGFENG GROUP (00489.HK)  +0.090 (+2.308%)    Short selling $19.69M; Ratio 9.234%   │Underweight│2.5 →3.9
ZHONGSHENG HLDG (00881.HK)  -0.320 (-2.671%)    Short selling $30.06M; Ratio 35.051%   │Neutral│12
YONGDA AUTO (03669.HK)  +0.020 (+0.893%)    Short selling $1.27M; Ratio 11.991%   │Neutral│1.9 →2.2
SINOTRUK (03808.HK)  +0.050 (+0.218%)    Short selling $2.77M; Ratio 6.487%   │Overweight│ 26
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-07-16 16:25.)

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