＜Research＞Citi: CN Hikes Subsidy for Car Scrap; BYD, LEAPMOTOR, GWM, GEELY May be Most Benefited

　　Citi Research, in its report, recaptured that China had elevated the subsidy amount for scrap-old-car-for-new policy launched in April. The subsidy standard for NEV-PVs was hiked from RMB10,000 to RMB20,000; and the subsidy standard for the purchase of ICE-PVs with an engine displacement of 2.0 liters or less was lifted to RMB15,000.

　　Under the influence of this subsidy update (valid until 31 December), the performance of Chinese automakers in 4Q24 will ride on squeezing out early-2025 demand in advance, Citi estimated. Overall, the broker viewed that this stimulus policy will be boon to destock ICEs and relatively swiftly increase the PHEV/ EREV penetration in 4Q24.

　　Related NewsCiti's Latest CN H-shr Top Buys (Table)

　　In Citis view, BYD COMPANY (01211.HK) +3.600 (+1.537%) Short selling $202.57M; Ratio 28.168% , LEAPMOTOR (09863.HK) +0.300 (+1.279%) Short selling $1.40M; Ratio 11.009% , GWMOTOR (02333.HK) -0.120 (-1.087%) Short selling $12.84M; Ratio 10.076% and GEELY AUTO (00175.HK) +0.090 (+1.155%) Short selling $26.67M; Ratio 29.228% should benefit most from the latest subsidy update, as they have higher sales growth potential and an ample product line of PHEV/ EREV product offering.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-26 12:25.)

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