Analyst
Key Indices
Top Stories
Sector Update | Automobile
We cut our 2026-28 sales estimates for auto OEMs, based on lower-than-expected 9M26 sales. 2027 sales are poised for a modest recovery on stabilisation of domestic sales and sustained buoyant export growth. Trade barriers to China’s EVs are rising globally through tariffs and localisation rules that force Chinese OEMs from exports to local production. This favours the leading OEMs – BYD and Geely. Maintain MARKET WEIGHT. Top BUYs: BYD, Geely, CATL. Top SELLs: Li Auto, XPeng.
Sector Update | Consumer
During the National Day holiday, service consumption remained resilient. Tourism and entertainment revenue rose 24% yoy, while catering and accommodation services also delivered solid growth. Household durables and audio-visual equipment were key bright spots, with sales surging 40% yoy. However, broader retail trends remained lukewarm, with sales at key commercial districts up only 5% yoy and Hainan duty-free per capita spending down 10% yoy. Our top picks are Anta, Atour, Midea, YUM China and Mengniu. Maintain OVERWEIGHT.
Top Stories
Sector Update | Automobile
We cut our 2026-28 sales estimates for auto OEMs, based on lower-than-expected 9M26 sales. 2027 sales are poised for a modest recovery on stabilisation of domestic sales and sustained buoyant export growth. Trade barriers to China’s EVs are rising globally through tariffs and localisation rules that force Chinese OEMs from exports to local production. This favours the leading OEMs – BYD and Geely. Maintain MARKET WEIGHT. Top BUYs: BYD, Geely, CATL. Top SELLs: Li Auto, XPeng.
Sector Update | Consumer
During the National Day holiday, service consumption remained resilient. Tourism and entertainment revenue rose 24% yoy, while catering and accommodation services also delivered solid growth. Household durables and audio-visual equipment were key bright spots, with sales surging 40% yoy. However, broader retail trends remained lukewarm, with sales at key commercial districts up only 5% yoy and Hainan duty-free per capita spending down 10% yoy. Our top picks are Anta, Atour, Midea, YUM China and Mengniu. Maintain OVERWEIGHT.
Analyst
Key Indices
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