Equity Research in HK and Mainland China

Li Tang

Highly experienced sell-side analyst with more than ten years of experience in the field of China’s in-depth policy-driven macro research in China (Beijing) .
Covering in equity research in HK and Mainland market mainly real estate, construction,steel sector.
The Ideas generation based on an analysis of China’s future direction and policy decisions fundamental analysis on sector impact, market drivers, timing and scale, combined with quantitative analysis.

China Central Economic Work Conference: "Strengthen National Strategic Science and Technology Power"

China Will Reduce Its Subsidies for Regular New Energy Vehicles by 20% in 2021

Hong Kong/ Jack Ma/ Covid-19/ EU-China/ US-China

China Aims To Build Strong Domestic NEV Brands that Can Compete in Global Markets

Thematic (Sector/Industry)

China Automobiles / Thematic (Sector/Industry)

China full-year NEVs sales will reach 1.25m units this year, according to China Association of Auto Manufacturers (CAAM) which would bring cumulative sales to 5.06mn units, surpassing the 2016 target of 5mn units by 2020.CAAM forecasts are usually close to the market. China's NEV sales was 1.206 million units last year, representing a year-on-year drop of 4%.
CAAM also pointed out as part of the country's rural revitalisation strategy that central government is studying a new policy to promote the use of new energy vehicles (NEVs) in rural areas in 2021.Overall, autos have been the beneficiary of much policy action including the upgrade of VI emissions standards, supportive NEV policies, and trucks sales due to construction activity picking up, with profits increasing 6.6% in January-October.
We are positive on NEV makers (<a href="https://www.smartkarma.com/entities/li-auto-inc" target="_blank" rel="noopener">Li Auto Inc. (LI US)</a>, <a href="https://www.smartkarma.com/entities/nio-inc" target="_blank" rel="noopener">NIO Inc (NIO US)</a> and <a href="https://www.smartkarma.com/entities/xpeng-motors" target="_blank" data-smartkarma-citation="entities:29217:1" rel="noopener">Xpeng Motors (XPEV US)</a> and NEV charging infrastructure <a href="https://www.smartkarma.com/entities/china-titans-energy-technology-group-co" target="_blank" rel="noopener">China Titans Energy Technology Group Co (2188 HK)</a>, <a href="https://www.smartkarma.com/entities/ten-pao-group-holdings-ltd" target="_blank" rel="noopener">Ten Pao Group Holdings Ltd (1979 HK)</a>.We believe both sectors stand to gain from an improvement in NEV sales after NEV sales lagged the recovery in traditional auto sales, and with local governments providing various support measures.

China full-year NEVs sales will reach 1.25m units this year, according to China Association of Auto Manufacturers (CAAM) which would bring cumulative sales to 5.06mn units, surpassing the 2016 target of 5mn units by 2020.CAAM forecasts are usually close to the market. China's NEV sales was 1.206 million units last year, representing a year-on-year drop of 4%.
CAAM also pointed out as part of the country's rural revitalisation strategy that central government is studying a new policy to promote the use of new energy vehicles (NEVs) in rural areas in 2021.Overall, autos have been the beneficiary of much policy action including the upgrade of VI emissions standards, supportive NEV policies, and trucks sales due to construction activity picking up, with profits increasing 6.6% in January-October.
We are positive on NEV makers (Li Auto Inc. (LI US), NIO Inc (NIO US) and Xpeng Motors (XPEV US) and NEV charging infrastructure China Titans Energy Technology Group Co (2188 HK), Ten Pao Group Holdings Ltd (1979 HK).We believe both sectors stand to gain from an improvement in NEV sales after NEV sales lagged the recovery in traditional auto sales, and with local governments providing various support measures.

China Expects to Surpass 2020 NEV Sales Target