Goldman Sachs Research Report: Goldman Sachs conducted a series of online meetings with various Chinese automotive companies, including major OEMs and suppliers, to discuss the outlook for the auto industry in 2026.

Focus on Overseas Expansion: Executives emphasized the need for accelerated overseas expansion, with plans for new models and local sales channels, while GWMOTOR noted limited price competition in most overseas markets except Thailand.

Profit Pool Contraction: The report anticipates a contraction in China's domestic auto profit pool by 2026, although overseas markets are expected to see growth in new energy vehicles (NEVs).

Stock Ratings: Goldman Sachs rated BYD and XPENG as "Buy" due to their potential to benefit from increased sales in overseas markets, despite overall challenges in the domestic market.

UBS Preferred Stocks: UBS has released a report highlighting its preferred stocks in Hong Kong and China, including HORIZONROBOT-W, FUYAO GLASS, TENCENT, and ZHAOJIN MINING, with respective target prices and short selling data.

Market Performance: The report notes various stock performances, with TENCENT showing a gain of 1.281% and ZHAOJIN MINING increasing by 7.285%, while FUYAO GLASS and CATL experienced declines.

Short Selling Insights: The short selling ratios for these stocks vary, with FUYAO GLASS at 18.012% and TENCENT at 14.976%, indicating differing levels of market sentiment.

Related Market Trends: Citi has identified Tencent and Alibaba as potential beneficiaries in the competitive landscape of cloud infrastructure and AI chatbot user traffic in China this year.

UBS Analysis on Stock Performance: UBS found that the best and worst performing Chinese stocks from the previous year tend to outperform the broader market by 15-20% on average in the following year, with best performers gaining in the first half and worst performers catching up in the second half.

Top Stock Picks by UBS: UBS has identified several stocks rated as "Buy" for 2026, including SUNGROW POWER, TONGWEI, CATL, and TENCENT, among others, with specific target prices provided for each.

Market Performance: Chinese carmakers experienced a month-over-month decline in wholesale volume for November, with retail sales expected to be flat month-over-month but down 8.7% year-over-year due to reduced subsidies impacting the industry.

Investment Recommendations: CMSI recommends GEELY AUTO as a top pick for its high result certainty and undervaluation, followed by BYD COMPANY and GDS-SW, with specific target prices set for each.

Auto Parts Stocks: The broker also suggests MINTH GROUP and FUYAO GLASS as favorable investments in the auto parts sector, with target prices of $42 and $86 respectively.

Robotics Sector: CMSI favors UBTECH ROBOTICS, HORIZONROBOT-W, and Hesai Group in the robotics field, all rated at Overweight, with target prices of $172, $13.8, and $28 respectively.

Stock Performance: AIA, Futu Holdings, and Tencent saw positive stock movements, while Henderson Land, Swire Properties, and Wynn Macau experienced slight declines.

Short Selling Data: Notable short selling activity was reported for several stocks, including Galaxy Entertainment and Horizon Robotics, with Galaxy having a high short selling ratio of 21.089%.

Buy Recommendations: Analysts have issued buy ratings for multiple stocks, including AIA, Futu Holdings, and Alibaba, indicating positive market sentiment.

Market Insights: Recent reports from JPM and CICC provide forecasts and insights into stock ratings and changes in market weightings, particularly for HSTECH constituents.