Jinwu Financial News | Summary:
The UBS research report discusses market feedback and government incentives for the Chinese auto industry. According to the report, investors generally expect the government to continue to implement economic stimulus policies until 2025, especially in the face of the threat of additional external tariffs. However, the report argues that the market is not paying enough attention to the sustainability of stimulus policies, and investors often attribute market performance to individual companies' new car releases, or assume that subsidies will continue. The report predicts that if the stimulus policy ends, market demand may weaken and consumers are no longer in a hurry to buy cars, which may cause stock prices to fall.
Core views:
1. Investors expect the government to continue to implement economic stimulus policies until 2025.
2. The market is not paying enough attention to the sustainability of stimulus policies, and there may be downside risks.
3. UBS predicts three stimulus scenarios: abolishing the scrap subsidy, extending the subsidy but reducing the amount, and maintaining the current level of subsidies.
4. UBS downgraded Geely and is cautious about the industry in the short term, especially the mass market.
