BYD Shares Retreat as Hong Kong Selloff and Soft China Demand Converge
Published on 10/02/2026 at 16:50 | Editorial boerse-global.de
BYD's stock came under pressure on Friday, with the shares down 2.4% at EUR 8.39 by the time of writing, having closed the previous session at EUR 8.60. The decline played out against a broad risk-off move in Hong Kong, where rising US Treasury yields and firmer oil prices sapped investors' appetite for equities. Reuters reported that the Hang Seng Index had shed 2.6% by midday, dragging the wider sector lower in its wake.
The pullback extends a difficult stretch for the Chinese electric-vehicle maker, which has been squeezed between a booming export business and a home market that keeps losing momentum.
A September Split Between Abroad and at Home
Operationally, BYD's September figures told two very different stories. The company moved 463,561 new-energy vehicles worldwide, a gain of 16.98% from a year earlier, with 180,700 units shipped overseas. Passenger-car and pickup exports more than doubled year on year, underscoring how central foreign demand has become to the group's growth engine.
At home, the picture was far less encouraging. Domestic sales fell by almost 13% in September, reflecting a consumer base that remains hesitant and a competitive landscape that grows more punishing by the quarter — rival Geely among those turning up the heat. For the first nine months of the year, total deliveries reached 3,131,576 vehicles, a decline of 3.94% compared with the same period in 2024.
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JPMorgan Steps to the Sidelines
Analyst sentiment had already been shifting before Friday's drop. JPMorgan downgraded BYD from "Overweight" to "Neutral," cutting its price target sharply from HK$124 to HK$88. The US bank pointed to a Chinese auto sector expected to stay weak through the second half of the year, alongside structural headwinds likely to weigh on the company and the broader industry into 2027. A softening domestic appetite, rising procurement costs, and policy uncertainty — including tariffs that could blunt Chinese manufacturers' overseas expansion — rounded out the case for caution.
The downgrade landed midweek, but its effect lingered, adding to the selling pressure that built up as the week wore on. Citigroup analysts separately estimated that wholesale sales of alternative-drive vehicles in September came in modestly below what market participants had hoped for, a sector-wide assessment that pushed Chinese manufacturers broadly into the red on Friday.
Recall Order and a Charging Milestone
Regulatory matters also kept BYD in the headlines during September. China's market regulator ordered the recall of 183,211 vehicles from the Qin and Tang lines — older model years in which a defect in the brake pedal stopper cap can occur.
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On the infrastructure side, the company pressed ahead with its buildout. September saw BYD bring its 2,000th fast-charging station along Chinese highways into service, hitting the milestone well ahead of its original target of year-end.
For now, the stock's trajectory hinges on whether overseas demand can keep offsetting the drag from China — and on whether investors are willing to look past a downgrade that frames the road ahead as bumpy well into 2027.
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