By Yifan Wang
Great Wall Motor’s shares rose sharply in Hong Kong early trade, as investors welcomed the auto maker’s latest monthly sales-volume growth.
The stock has gained as much as 4.7% and was last up 3.7% at HK$8.45.
The rally came after Great Wall Motor on Monday posted a 26% growth in its May sales volume.
Analysts reckon the growth pace could help alleviate market’s earlier worries over slowing car sales in China, which led to an earnings miss by Great Wall for the first quarter of the year.
But the latest numbers show that second-quarter sales are picking up, and could improve 50% sequentially, Citi analysts said in a note.
They keep a buy rating on the company, citing an expected margin boost with upcoming new model launches and easing raw-material costs.
Write to Yifan Wang at yifan.wang@wsj.com
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