Shares of Chinese electric vehicle giant BYD surged to a record high in Hong Kong on renewed investor optimism, widening the premium over its Shenzhen-listed shares to an all-time high.
The stock jumped as much as 4.4% in Hong Kong, pushing its price to over 5% higher than its mainland counterpart, after adjusting for currency exchange, according to Bloomberg data.
The rally followed Citi lifting the stock’s price target on its HK stock to HK$727 from HK$688 and on Shenzhen shares to 669 yuan from 630 yuan.
The stock has also been buoyed by upbeat sentiment following Contemporary Amperex Technology Co.’s market debut, signalling growing confidence among foreign investors in BYD’s long-term prospects.
This performance stands out in a broader market where Hong Kong shares typically trade at a 33% discount compared to mainland stocks, as tracked by the Hang Seng Stock Connect China AH Premium Index.
Source: Bloomberg
BYD attracts premium in HK due to its appeal among global investors
Strategists at UBS AG noted that while the overall valuation gap between mainland and Hong Kong markets is expected to persist, select stocks like BYD and China Merchants Bank Co. are attracting a premium due to their perceived quality and appeal among global investors.
Better liquidity in offshore markets is further enhancing the attractiveness of BYD’s Hong Kong shares.
Citi cited a favourable export pattern for Chinese passenger vehicles in the first four months of 2025, which benefits BYD in particular.
Citi pointed to the growing momentum in plug-in hybrid exports and accelerating market share gains for BYD’s battery electric vehicles abroad.
Citi also assessed that BYD is best positioned among major automakers to withstand any potential price cuts in 2026, thanks to its economies of scale and diversified geographic sales mix.
BYD eclipses Tesla in future readiness
Further reinforcing its rise, BYD has overtaken Tesla in the global future readiness rankings published by the International Institute for Management Development (IMD).
The report measures a company’s capacity to anticipate and adapt to external changes.
IMD said Chinese dominance in the automotive sector is growing, with BYD, Geely, and Li Auto occupying three of the top four positions.
Earlier, BYD surpassed Tesla to become the world’s top EV seller.
In 2024, it reported $107 billion in revenue and delivered 4.27 million vehicles, far outpacing Tesla’s 1.79 million units and $97.7 billion in revenue, which marked its first annual sales decline.
BYD deepens its roots in Europe with Hungary expansion
BYD’s international ambitions continue to grow.
CEO Wang Chuanfu announced the establishment of a European centre in Hungary during a joint news conference with Hungarian Prime Minister Viktor Orban.
The new facility will create 2,000 jobs and serve as a hub for sales, after-sales services, testing, and the development of localised vehicle models.
Hungary, which has maintained close trade ties with China under Orban’s leadership, is already home to BYD’s European electric bus factory in Komarom.
A second plant for electric vehicle production is currently under construction, cementing BYD’s strategic position in the European market.
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