China's New Energy Vehicle Sales Rise In November, Manufacturing Activities Expand and FDI Investment Plunge

Li Chen
02 Dec, 2024
Hong Kong

Market sentiment improved in China and Hong Kong after the latest manufacturing survey indicated a rebound in activities for the second month in a row.

The Hang Seng index increased 0.2% to 19,454.60, and the mainland-focused CSI 300 index advanced 0.6% to 3,938.12. 

The official and private surveys of the manufacturing sector showed a rebound in activities, boosted by new orders and domestic and foreign demand. 

The Caixin China General Manufacturing PMI increased to 51.3 in November from 50.3 in October, according to a report released by S&P Global. 

The index of activities rose at the fastest pace since June amid a surge in orders for electric vehicles, new home sales, and the sustained increase in online commerce. 

The National Bureau of Statistics said the Purchasing Managers' Index in November rose to 50.3 from 50.1 in October, marking the highest level since April.

The index improved for the third month in a row and stayed above the 50-mark for the second consecutive month. 

Also, the official non-manufacturing purchasing managers' index in November was unchanged from the previous month at 50.0, driven by a faster decline in new orders and employment from the previous month. 

A separate report from the Ministry of Commerce showed that foreign direct investment in the ten-month period to October fell 29.8% from a year ago to 693.21 billion yuan or $95.8 billion. 

After peaking at $189.1 billion in 2022, foreign direct investment fell to $163.3 billion, and is expected to dip to $127 billion 2024. 

 

China Stock Movers 

Electric vehicle makers advanced following the rise in vehicle sales in November. 

BYD jumped 2.5% to HK $260.40, and Geely Automobile Holding gained 4.4% to HK $14.48. 

BYD said sales increased to 504,003 new energy vehicles, an increase of 0.7% from 500,526 vehicles and a jump of 67.2% from 301,378 vehicles a year ago. 

Geely said sales in November increased 27% to 250,136 units, and new energy vehicle sales soared 88.3% to 122,453 from a year ago, respectively. 

Li Auto declined 2.5% to HK $88.65 after the company delivered few vehicles in November from the previous month. 

Vehicle sales dropped 5.3% to 48,740 units but rose 18.8% from the previous year to 41,030 units. 

Xpeng and Xiaomi also reported a rise in vehicle sales from a year ago and from the previous month in November.