China Green Push Supports EV and Battery Suppliers

Markets are already separating winners from losers. BYD shares are trading at HK$88.17, above both the 50-day and 200-day moving averages, with the stock still holding near a recent range despite a pullback from April highs. Caterpillar, by contrast, has been far more volatile: its shares closed at $864.30 on Monday, sharply below the 50-day average after a steep slide from above $1,060 in late June, reflecting how China demand, industrial cyclicality and policy shifts ripple through global equipment names.

The clearest macro risk is the currency. Adalytica’s Chinese yuan trade signals show “fear” at 19 and “extreme fear” awareness at 0, with sentiment down 81 points over seven days, underscoring how fragile sentiment remains around China assets and how much policy stimulus or export competitiveness can matter for investors.

That tension helps explain why green policy is being watched beyond mainland China. A more aggressive push into clean manufacturing can bolster regional supply chains, pressure rivals, and shape pricing power across commodities, batteries and heavy industry. It also keeps global investors focused on whether Beijing’s industrial policy can offset weaker domestic confidence and external trade friction.

The next catalysts are policy detail from Beijing, any follow-through in green-capex orders, and whether currency stabilization and broader China risk appetite improve enough to sustain the move in Chinese equities and suppliers tied to the transition.