LIVE MARKETS-Chinese EV and battery names are oil shock winners, say HSBC
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CHINESE EV AND BATTERY NAMES ARE OIL SHOCK WINNERS, SAY HSBC
A sustained spike in oil and gas is bad news for most non-energy stocks, but HSBC point out however, it is good for Chinese electric vehicle and battery names.
The argument is pretty clear: higher oil prices both make EVs cheaper compared to cars with internal combustion engines and also support broader electrification and energy storage systems.
If that's the case, HSBC reckon it's Chinese companies that are well-placed to benefit.
They say in a Tuesday note that "China is not only the global technology, scale and cost leader but also increasingly the most complete system solution provider globally across vehicle, batteries, charging and storage."
On batteries, they say, China provides more than 70% of global EV batteries and more than 80% of global ESS (energy storage systems) battery supply.
The three stocks HSBC particularly flag are automakers BYD and Geely, and battery firm CATL.
CATL they say had 39% global EV battery and 30% of ESS battery market share in 2025, while BYD is targeting 1.5 million units for overseas markets in 2026, up 43% year-on-year, while Geely is aiming for 640,000-750,000.
Investors are liking the story. BYD's 1211.HK Hong Kong shares are up 9% since the war began, Geely's 0175.HK are up 23% and CATL 3750.HK are up 24% compared to a 5.6% fall in the benchmark Hang Seng Index .HSI.
And it's not just EVs and batteries, investors are also rushing into Chinese renewable energy stocks. The CSI Green Electricity Index .CSI931897 has climbed 6% in March.
(Alun John)
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