EU anti-subsidy probe on Chinese EVs to have negative impact on BYD, recommends near-term short – Daiwa
COMPANY NEWS POLICY & REGULATION STOCKS VIEWS & ANALYSIS
EU anti-subsidy probe on Chinese EVs to have negative impact on BYD, recommends near-term short – Daiwa
COMPANY NEWS POLICY & REGULATION STOCKS VIEWS & ANALYSIS

EU anti-subsidy probe on Chinese EVs to have negative impact on BYD, recommends near-term short – Daiwa

 

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The EU has initiated an anti-subsidy probe on Chinese electric vehicles, and if it imposes punitive tariffs on Chinese EVs, it will have a negative impact on BYD Company share price, but it will be favorable to BYD in the long run, as large carmakers such as BYD would be able to set up factories in Europe, Daiwa said in a note.

Daiwa recommended a near-term short, and to cover the position before the release of monthly sales data, or buy Geely Auto, as Geely Auto has plants in Europe through Volvo. 

It also recommended investors to buy A-share of Tuopu Group, as component players are unlikely to be a target for anti-subsidy.

Daiwa rated positive on China’s auto industry, and a positive view on BYD Company’s overseas development, saying that overseas markets will be the main driver of earnings growth in the long run.