China’s SUV Fever: JP Morgan’s Stock Picks By Shuli Ren
Chinese consumers have a love affair with SUVs.
The SUV segment has been the strongest in China’s car sales, witnessing a 40% annualized growth between 2011 and 2015. The pace has accelerated to 52% this year.
At this rate, China will head towards 40% penetration in two years, the highest in the world. In other words, every 2 out of 5 new cars on the road will be SUVs.
Why do Chinese love SUVs so much? J.P. Morgan analyst Nick Lai has a few hypotheses:
Source: Barron's Asia
http://blogs.barrons.com/asiastocks/201 ... ite-picks/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"