Consumer Discretionary

Report by 86Research

Media outlets have been highlighting the China-based R&D efforts of multinational auto brands like Volkswagen, Renault and Hyundai. Notably, autonomous driving, smart cabin technology and lithium battery development are key areas where these brands seek lasting partnerships - sometimes to better localise their China-specific models but increasingly to gain a competitive edge in global markets as well. This poses a thorny question for US automakers pursuing decoupling: on one hand, imitating such strategies is politically unpalatable back home; on the other, an import ban on Chinese cars does not provide full protection, as European and Asian brands are also out-innovating them, often by leveraging their China-based R&D operations. The challenge to US carmakers' global sales may prove greater than some had anticipated.

Consumer Discretionary

Report by Copley Fund Research

Ownership has soared to record levels - a consistent unloved stock among Asia Ex-Japan investors between 2010 and 2020, the percentage of funds invested has risen from zero at the end of 2020 to just over 22% today. Over the last 6 months, the percentage of funds invested has risen by 5.8% and a further 9.3% of funds switched to overweight. This wasn’t part of an industry-wide move, with outflows seen in many of its competitors such as Nio, Maruti Suzuki and Hyundai Motor Co. Clearly, investors are growing in confidence that BYD can maintain its leading position in the EV market and further capitalise on the growing global trend towards sustainable transportation.