Morgan Stanley: if the news of subsidies for new energy vehicles is true, local brands such as BYD, Changqi and Geely will benefit more.
Morgan Stanley reported that the subsidy program will focus on cars priced no more than 150000 yuan (the same below), which are home to domestic brands such as 1211.HK, 2333.HK and 0175.HK. Morgan Stanley believes that the three electric car companies, namely, Weilai-SW (9866.HK), Xiaopeng Automobile-W (9868.HK) and ideal Automobile-W (2015.HK), will not be affected, as all their models are above 150000 yuan, but the start-up of second-tier electric cars may benefit.
As a rule of thumb, stimulus measures usually take at least one to two months to take effect, and are expected to boost car sales from the middle of the third quarter, the newspaper said. Morgan Stanley believes that investors are waiting for the positive news, and the market is expected to react positively to it, which means that the worst of the auto industry is over. Shanghai production base has also resumed work recently, even if the progress is slow. If the news is true, the sales contribution will depend on the implementation schedule, the length of the policy, new car pipelines, car supply, and, more importantly, the development of the epidemic.
Follow us
Find us on
Facebook,
Twitter ,
Instagram, and
YouTube or frequent updates on all things investing.Have a financial topic you would like to discuss? Head over to the
uSMART Community to share your thoughts and insights about the market! Click the picture below to download and explore uSMART app！
Disclaimers
uSmart Securities Limited (“uSmart”) is based on its internal research and public third party information in preparation of this article. Although uSmart uses its best endeavours to ensure the content of this article is accurate, uSmart does not guarantee the accuracy, timeliness or completeness of the information of this article and is not responsible for any views/opinions/comments in this article. Opinions, forecasts and estimations reflect uSmart’s assessment as of the date of this article and are subject to change. uSmart has no obligation to notify you or anyone of any such changes. You must make independent analysis and judgment on any matters involved in this article. uSmart and any directors, officers, employees or agents of uSmart will not be liable for any loss or damage suffered by any person in reliance on any representation or omission in the content of this article. The content of the article is for reference only and does not constitute any offer, solicitation, recommendation, opinion or guarantee of any securities, virtual assets, financial products or instruments. Regulatory authorities may restrict the trading of virtual asset-related ETFs to only investors who meet specified requirements. Any calculations or images in the article are for illustrative purposes only.
Investment involves risks and the value and income from securities may rise or fall. Past performance is not indicative of future performance. Please carefully consider your personal risk tolerance, and consult independent professional advice if necessary.
Market News
