JPMorgan downgraded Li Auto (02015.HK) to "Underweight" and named Geely (00175.HK) and Sinotruk (03808.HK) as its top picks.

JPMorgan issued a research report stating that this year's performance of China's automobile market will exhibit a mixed trend resembling both 2018 and 2025: 1) As the overall passenger vehicle market growth rate has fallen into negative territory (similar to 2018), the industry’s performance for the entire year may remain relatively weak; 2) However, driven by new model launches, seasonal trend fluctuations, and changes in earnings expectations (resembling 2025), market volatility throughout the year is expected to intensify. Whether absolute or relative gains can be achieved will depend on whether corporate earnings can exceed expectations, which will be more challenging amid rising costs. Taking these factors into account, JPMorgan's top pick is Geely.

AASTOCKS16:37

CLSA: Rising costs further squeeze automakers' profit margins, with BYD (01211.HK) and Leapmotor (09863.HK) better positioned to absorb the pressure.

In a research report, CLSA pointed out that aside from slowing demand and diminishing policy support, the recent rise in commodity prices will add another headwind for automakers, potentially accelerating industry consolidation and adjustments to pricing strategies. Based on spot price estimates for the first quarter (including the impact of hedging operations), compared with the second half of 2025, raw material costs are expected to increase the average cost per vehicle by approximately RMB 3,000, primarily due to lithium carbonate (around RMB 1,700), memory chips (about RMB 800), and non-ferrous metals (approximately RMB 2,000). CLSA believes that companies with higher vertical integration (such as…

AASTOCKS16:24

Cui Dongshu of the China Passenger Car Association: Last month, the average price reduction for new cars was RMB 37,000, with new energy vehicles seeing a decrease of 14.8%.

Cui Dongshu, Secretary General of the China Passenger Car Market Information Joint Conference, provided the latest data showing that in January 2026, the average price of new car models with price cuts in the overall passenger car market was RMB 248,000 (hereinafter the same), with an arithmetic average discount of RMB 37,000. A breakdown shows that the average price of discounted new energy vehicle models was RMB 253,000, with an average price reduction of RMB 38,000, representing a decrease of 14.8%; the average price of discounted conventional fuel vehicle models was RMB 238,000, with an average price reduction of RMB 36,000, resulting in a decrease of 15%. The overall discount rate for new car models with price cuts in Mainland China’s passenger car market that month reached as high as 14.9%, rising month-on-month.

AASTOCKS08:49

J.P. Morgan Remains a Buy on Zhejiang Leapmotor Technology Co., Ltd. Class H (9863)

TipRanks02:35 · Ratings

Guohai Securities: Reiterates 'Buy' Rating for Leapmotor (09863), Expresses Optimism about the Company’s Future Development

On February 1, 2026, Leapmotor released its January sales figures. Leapmotor delivered a total of 32,000 units in January, representing a year-on-year increase of 27.4%.

Zhitong FinanceFeb 6 15:25 · Ratings

Leapmotor's shares rose as January deliveries increased by 27% year-on-year, and the full-year sales target was raised to 1.05 million units.

Leapmotor's stock price fell nearly 5% in the afternoon session, closing at HKD 43.48, with a trading volume of HKD 323 million.

Zhitong FinanceFeb 6 14:12