BYD Slips 2.4% in Hong Kong Rout as JPMorgan Cuts Rating and Export Boom Masks Home-Market Weakness

BYD closed down 2.4% at EUR 8.39 amid a broad Asian selloff, after JPMorgan downgraded the stock to Neutral and trimmed its target to HKD 88.

Rising long-term U.S. Treasury yields and firmer crude prices darkened the mood across Asian equity markets on Friday, triggering a broad selloff in Hong Kong that cut across major sectors, autos included. BYD shares were swept up in the downdraft, closing the session down 2.4% at EUR 8.39.

Market reports pointed to selling pressure building from the morning, though no company-specific bad news was identified as the trigger. The pullback instead reflected a wider retreat from risk at international trading venues, as investors digested shifting rate expectations and the strain that higher borrowing costs place on global growth segments.

JPMorgan Steps Back From Its Bullish Call

The downbeat session landed on top of an already more cautious analyst stance. On September 29, JPMorgan downgraded BYD from "Overweight" to "Neutral," while trimming its price target to HKD 88 from HKD 124.

The U.S. bank cited an expected cooling in China's auto sector, flagging sluggish domestic demand and rising input costs as the main headwinds. Regulatory uncertainty and trade-related restrictions in key overseas markets add further friction to operations, the analysts noted. Their reassessment captures the structural challenges facing Chinese manufacturers, with an intense price war at home squeezing margins and raising the stakes on international distribution.

September Shipments Rise, But the Full-Year Picture Is Softer

Even so, the company's operating momentum held up last month. Global sales of new-energy vehicles climbed 16.98% year-on-year in September to 463,561 units — the fifth consecutive monthly advance, according to Reuters.

Exports of passenger cars and pickups powered the gain, jumping 153.9% to 179,877 units. That overseas surge largely offset persistently weak demand from Chinese consumers, though trade-policy barriers could weigh on this growth channel going forward. Reuters also reported that domestic appetite in China remained subdued.

The monthly strength stands in contrast to the cumulative trend: total sales from January through September reached 3,131,576 units, a decline of 3.94% versus the same period a year earlier.

Governance Resolutions Round Out the Agenda

Alongside its monthly production and sales figures, BYD disclosed decisions from its governing bodies. The company's first extraordinary general meeting and the inaugural session of its ninth supervisory board approved formal appointments for its leadership organs, marking the transition into a new term. For investors, however, the focus stays fixed on how effectively the automaker can navigate the sector's difficult landscape — and on whether new overseas markets can offset the slump at home as macroeconomic headwinds and geopolitical risks keep the operating environment demanding.