ETF Idea China’s electric vehicle sector is an area of opp | FSMOne SG - Research Highlights

ETF Idea

China’s electric vehicle sector is an area of opportunity amidst regulatory crackdowns

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• As part of its efforts to go green, the Chinese government is aiming for peak CO2 emissions before 2030, and carbon neutrality before 2060.

• The EV sector is in line with the Chinese government’s long-term strategic priorities. Given recent regulatory crackdowns, investors can look to the EV sector for investment opportunities.

• To drive the sector’s growth, the Chinese government has invested at least USD 60 billion, and is pushing an ambitious plan to transition to all-electric or hybrid cars by 2035.

• We recommend investors seeking exposure to China’s EV sector to consider the Global X China Electric Vehicle and Battery ETF. Our 2023 target price is HKD 268, which offers an upside potential of 34%.

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: Global X China Electric Vehicle and Battery ETF (HKEX:2845)