HSBC: Price pressure from mainland car manufacturers may be the main headwind in the market, with discounts reaching a record high of 16.8% in April.

J.P. Morgan released a research report stating that in April, the overall stock prices of Chinese car companies rose by 8%, driven by strong first-quarter profits such as Geely Auto, continuous sales leadership such as Leap Motor, and OEM car manufacturers. However, companies like Dongfeng Group, SAIC Group, and GAC Group, which recently reported slower profit or sales growth, did not perform well. J.P. Morgan believes that price pressure may become the main headwind in the market. The bank's analysis of industry-wide price discounts showed that by the end of April, the overall discount reached 16.8%, up 53 basis points from March, setting a new high since tracking the bi-weekly data in 2017.