BYD Slips in Hong Kong Rout as JPMorgan Cuts Rating and Recall Weighs on Sentiment
Published on 10/02/2026 at 12:41 | Editorial boerse-global.de
Shares of BYD came under pressure in Frankfurt trading, with the stock shedding 2.1% to change hands at EUR 8.41. The decline was part of a broader sell-off sweeping Hong Kong equities, where the Hang Seng Index retreated 2.6% by midday. Rising US Treasury yields and climbing oil prices sapped risk appetite across Asian markets, dragging the entire automotive sector lower. No company-specific news triggered the move — BYD simply got caught in the undertow.
A Split Picture on the Home Front
The pullback in the share price stands in contrast to the company's latest operational figures. For September, BYD reported global sales of 463,561 new-energy vehicles, a gain of roughly 17% from a year earlier. Overseas demand did the heavy lifting: exports of passenger cars and pickups more than doubled year-on-year, cushioning a soft domestic market where an intensifying price war with rivals such as Geely continues to bite. At home, September volumes fell by nearly 13%.
The nine-month tally tells a similar story of divergence. From January through September, BYD moved 3,131,576 vehicles — a decline of 3.94% compared with the same period a year ago, underscoring just how much the export engine is offsetting weakness in China.
Should investors sell immediately? Or is it worth buying BYD?
JPMorgan Steps to the Sidelines
Analysts are growing more cautious on the stock. JPMorgan downgraded BYD from "Overweight" to "Neutral," trimming its price target to HKD 88 from HKD 124. The bank pointed to sluggish domestic demand, rising input costs, and mounting trade barriers and protectionist measures in overseas markets as reasons for the more guarded stance.
Recall and Regulatory Headwinds
Regulatory matters also drew attention in September. On September 18, China's market regulator announced a recall of 183,211 vehicles from the Qin and Tang model lines built between 2014 and 2022. The affected cars will receive a free replacement of a brake pedal component to eliminate the risk of cracking.
Meanwhile, BYD pressed ahead with its charging infrastructure buildout. In September, the company brought its 2,000th fast-charging station along Chinese highways into service — a milestone reached well ahead of its original year-end target.
On the international stage, reports suggested that BYD executives were in talks to join a business delegation accompanying Chinese President Xi Jinping on a planned visit to Washington. No confirmation of the invitations had emerged at the time.
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