Standard Chartered (OTC:SCBFF)'s CEO, Bill Winters, recently highlighted the robust growth of China's electric vehicle (EV) sector amidst an uneven economic recovery and a slowdown following the COVID-19 pandemic. Speaking at the Global Financial Leaders’ Investment Summit on Wednesday, Winters underscored China's commitment to transitioning towards a sustainable future by prioritizing renewable power technologies and EVs.
In 2022, China held a commanding position in the global EV market with a 59% share, selling 5.9 million units. The vast majority of these sales came from domestic brands such as BYD (SHE:SZ:002594), Wuling (HKEX:0305), and Chery (SSE (LON:SSE):601633). This data was reinforced by research from Canalys and Counterpoint Research, which showed that these Chinese brands held an 81% share of the domestic market.
While the EV sector is booming, Winters pointed out that the property sector in China has been struggling. High-profile firms such as Evergrande (HKEX:HK:3333) and Country Garden (HKEX:2007) have been grappling with significant debt issues. Amidst this 'property decompression', Standard Chartered has reduced its exposure to this sector.
Despite these challenges and a third-quarter pre-tax profit slump of 33%, Winters expressed cautious optimism for the property market's future. He emphasized strong growth in other key markets such as Hong Kong, which is Standard Chartered's largest single market and home to its growing offshore business.
Winters also noted that despite a slowdown in the post-COVID rebound since April, Standard Chartered still sees China as crucial to its operations. The bank also places significant importance on other markets including India, UAE, South Korea, Singapore, and Hong Kong. In particular, Standard Chartered's offshore business based in Hong Kong is growing at an impressive rate of 50-60% per annum.
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