China Specialist, Auto and Industrial Specialist

Victoria Li

20 years experience as sell side analyst focusing on China's Industrial and Auto sectors

Thematic (Sector/Industry)

China Consumer discretionary / Thematic (Sector/Industry)

<p class="ember-tether-target ember-tether-element-attached-top ember-tether-element-attached-left ember-tether-target-attached-top ember-tether-target-attached-right">China's Passenger Vehicle sales is very likely to have an annual decline for the first time in 2017. The 15% y/y growth in 2016 (which saw Chinese car sales grow by an equivalent of car sales in Germany) was a result of the sales tax being reduced from 10% to 5%. Though the sales tax has been increased to only 7.5%, vs. previously expected 10%, in 2017, consumers brought forward purchases last year. Slowing property sales growth and high property prices also mean less discretionary income for car purchases. SUV may still outperform.</p>

China's Passenger Vehicle sales is very likely to have an annual decline for the first time in 2017. The 15% y/y growth in 2016 (which saw Chinese car sales grow by an equivalent of car sales in Germany) was a result of the sales tax being reduced from 10% to 5%. Though the sales tax has been increased to only 7.5%, vs. previously expected 10%, in 2017, consumers brought forward purchases last year. Slowing property sales growth and high property prices also mean less discretionary income for car purchases. SUV may still outperform.

Beijing Baofeng Technology Co (300431 CH)

Nanjing Xinjiekou Department S (600682 CH)

China Shipbuilding Industry Group Power (600482 CH)

Chinese Universe Publishing&Media (600373 CH)

Meinian Onehealth Healthcare H (002044 CH)

37 Interactive Entertainment N (002555 CH)

China Tourism Group Duty Free Corp Ltd (601888 CH)

Chongqing Changan Automobile Company (200625 CH)

Shenzhen Overseas Chinese (A) (000069 CH)

Global Top E-Commerce Co., Ltd. A (002640 CH)

Beijing Gehua Catv Network Co, Ltd. (600037 CH)

Shanghai Jin Jiang Capital Company Limited (2006 HK)

Shanghai Jin Jiang Capital Company Limited

Songcheng Performance Development (300144 CH)

Anhui Zhongding Sealing Parts Co, Ltd. (000887 CH)

Belle International Holdings (2129452D HK)

Sichuan Changhong Electric Co, Ltd. (600839 CH)

Hisense Visual Technology Co., Ltd. A (600060 CH)

China Auto 2017 - Hangover Time