Chinese auto making stocks tumbled last Friday after Morgan Stanley turned sour on the auto industry. Today it’s the turn of electric vehicle makers. BYD (1211.Hong Kong) slipped 4.1% in Hong Kong after Citi Research turned negative on the EV industry and downgraded the stock to Sell.
China’s electric car sales have blossomed in the last two years because of heavy government subsidies. But Beijing is changing its mind on the “car of the future” and is expected to slash subsidies next year.