The Next Sector in Cina That May Implode Soon

 

China EV war: investors curb their enthusiasm for NIO, Xpeng, other Tesla rivals as earnings test follows US$124 billion market drubbing

• Market pacesetters NIO, Xpeng, Li Auto face a myriad of challenges with losses still to snowball in 2021 and analysts grow weary of short-term outlook
• Automotive chip shortage will add to other lingering market concerns about US-listed Chinese stocks and outlook for central bank policy tightening

 Investors who arrived late for China’s  electric-car makers’party have suffered a US$124 billion (HK$963 billion) beating since the industry’s pacesetters slumped from their market highs this year. That may just be the first cut.

 

A combination of chip shortage , US-China tensions on issues related to audits and sanctions, as well as a US$10.5 billion stock dumping by Goldman Sachs on Friday, are pressuring sentiment just as NIO, Xpeng and Li Auto prepare to release their quarterly corporate health checks after a market slump.