China Auto Sector – Bearish on Car Loan Growth

CHINA - Healthcare, Steel, Autos, Education, Research From Beijing

Scott Laprise/ 乐天虎

CHINA - Healthcare, Steel, Autos, Education

Thematic (Sector/Industry)

China Consumer discretionary / Thematic (Sector/Industry)

<ul>
<li>April vehicle shipments were below consensus expectations (‑2.2%) YoY, passenger cars worse at (-3.7%).</li>
<li>The sales decline has LITTLE to do with a change in the sales tax but due to slowing real estate sales from gov’t tightening.</li>
<li>We could see sales slow even further through 2017.</li>
<li>We expect to see consensus earning fall further from here.</li>
<li>
NEGATIVE: Beijing Auto will be hurt by Hyundai poor sales, Chang An poor Ford sales and Great Wall. Car dealers will have high inventories and need to discount…</li>
</ul>


April vehicle shipments were below consensus expectations (‑2.2%) YoY, passenger cars worse at (-3.7%).
The sales decline has LITTLE to do with a change in the sales tax but due to slowing real estate sales from gov’t tightening.
We could see sales slow even further through 2017.
We expect to see consensus earning fall further from here.

NEGATIVE: Beijing Auto will be hurt by Hyundai poor sales, Chang An poor Ford sales and Great Wall. Car dealers will have high inventories and need to discount…


China Autos - April Auto Sales Disappoint