<div id="readability-page-1" class="page"><div>HSBC Research published a report stating that domestic demand in Chinas new energy vehicle market remains weak. In April, retail sales of new energy passenger vehicles were flat MoM and fell 6% YoY, while overall passenger vehicle demand declined 21% YoY. The broker lowered its 2026 China passenger vehicle demand growth forecast to negative 5%, and expects new energy vehicle penetration rates to reach 62%, 70% and 77% in 2026, 2027 and 2028, respectively. It believes that as subsidies are phased out, competition is shifting from entry-level electric vehicles to the high-end market, and gradually from pure price competition to technology integration and user experience.On exports, Chinas passenger vehicle exports reached 2.7 million units in the first four months of 2026, up 69% YoY, mainly driven by electric vehicles, whose share increased from 38% to 49%. The broker believes that amid weak domestic demand, exports remain an important pillar supporting capacity utilization, earnings resilience and product mix improvement.The broker continues to favor technology leaders with clearer earnings visibility. For BYD COMPANY (01211.HK) -2.650 (-2.748%) Short selling $1.15B; Ratio 41.486% , it is positive on its technology upgrades and strong new model cycle to drive sales recovery, and remains constructive on its long-term ecosystem value and overseas expansion potential. GEELY AUTO (00175.HK) -1.040 (-4.810%) Short selling $302.97M; Ratio 18.737% has demonstrated earnings resilience through a better product mix, with new models and overseas markets providing sales opportunities. XPENG-W (09868.HK) -0.650 (-1.060%) Short selling $223.31M; Ratio 30.623% is benefiting from improved fundamentals following the launch of its new GX model, while its Robotaxi and robotics narratives may attract growth- and tech-focused fund inflows. NIO-SW (09866.HK) -1.740 (-3.531%) Short selling $80.91M; Ratio 27.805% is expected to see higher visibility in 2026 sales growth and earnings improvement, supported by new models (ONVO L80 and NIO ES9) and growth in its core product mix, particularly ES8. CATL (03750.HK) -5.500 (-0.809%) Short selling $481.05M; Ratio 26.419% remains the brokers core top holding, supported by strong earnings visibility, market share defense capability, and growth from energy storage systems (ESS) and overseas markets.The broker assigns a Buy rating to BYD COMPANY (01211.HK) -2.650 (-2.748%) Short selling $1.15B; Ratio 41.486% with an H-share TP of HKD146; a Buy rating to GEELY AUTO (00175.HK) -1.040 (-4.810%) Short selling $302.97M; Ratio 18.737% with a TP of HKD32; a US share TP of USD27.7 and a Buy rating to XPeng Inc. (XPEV.US) ; a US share TP of USD6.8 and a Buy rating to NIO Inc. (NIO.US) ; and a Buy rating for CATL, with a Hong Kong share TP of HKD790 and an A-share TP of RMB547 for CONTEMPORARY AMPEREX (300750.SZ) -6.370 (-1.504%) . (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-18 16:25.) (A Shares quote is delayed for at least 15 mins.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)</div></div>

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HSBC Research reports weak domestic demand in China's new energy vehicle market, with retail sales flat MoM and down 6% YoY. The broker lowers its 2026 demand growth forecast to -5%, while exports surged 69% YoY, driven by electric vehicles. HSBC favors BYD, Geely, XPeng, NIO, and CATL, assigning Buy ratings and specific price targets for each, citing technology upgrades and overseas expansion as key growth drivers.

- HSBC Research reported weak domestic demand in China's new energy vehicle market, with April retail sales of new energy passenger vehicles flat MoM and down 6% YoY.  
- China's passenger vehicle exports rose 69% YoY to 2.7 million units, driven by electric vehicles, providing essential support amid weak domestic demand.  
- The broker favors technology leaders like BYD, GEELY, XPENG, NIO, and CATL, assigning Buy ratings and setting target prices to encourage investment in the sector.

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HSBC Research Favors BYD COMPANY , GEELY AUTO , XPENG-W , NIO-SW  and CATL; Exports Offset Weak Domestic Demand