HONG KONG, Feb 2, 2026, 04:27 HKT — Premarket
Contemporary Amperex Technology Co., Limited (CATL) Class A shares ended the day 2.37% higher at 350 yuan, after fluctuating between 344.10 and 353.76 during trading, according to market data. The stock, listed in Shenzhen, has a 52-week range from 209.11 to 424.36. (Investing)
The key question on Monday is demand, not technicals. China’s official purchasing managers’ index (PMI) — where readings under 50 indicate contraction — dropped to 49.3 in January. The non-manufacturing PMI also dipped, falling to 49.4, according to the latest official survey. Ting Lu, Nomura’s chief China economist, said Beijing “will have to do much more” to push 2026 growth above 4.5%, despite measures like consumer subsidies backed by special bond funding and targeted rate cuts. (Reuters)
The EV sector wasn’t kind. BYD reported January vehicle sales dropped 30.1% from the previous year, hitting 210,051 units, per a stock-market filing. This marks the fifth consecutive month of declines. The company pointed to fiercer domestic competition and a slowing market as China cuts back support for cheaper models. (Reuters)
That’s significant for CATL as it serves as a barometer for China’s battery supply chain. Its A-shares, traded in yuan onshore, often reflect changes in forecasts for EV production, pricing trends, and the flow of new orders from automakers and energy-storage firms.
Investors will be watching policymakers’ tone closely. The PMI report included comments from Huo Lihui at the National Bureau of Statistics, highlighting a seasonal slowdown and soft demand — phrases traders often read as clues on how fast stimulus could be increased.
CATL faces a straightforward near-term scenario: macro indicators are slipping as the week begins, and monthly EV data only adds to the uncertainty. A robust policy signal could calm nerves. If it’s weak, expect continued volatility.
After Monday’s open, traders will focus on further January delivery reports from Chinese automakers along with any new signals on consumer support and credit conditions. These factors tweak demand slightly, but margins remain the main headache throughout the battery supply chain.
The read-through isn’t straightforward. BYD relies heavily on its own battery supply, and a single month’s sales can be skewed by pricing shifts, fresh model rollouts, or export timing. A weaker PMI might signal caution, not necessarily a plunge in final demand.
Coming up on Feb. 2 is China’s private-sector PMI release. The market will be watching closely to see if it backs up or contradicts the drop shown in the official survey.
