A SHANGHAI-LISTED automaker rose by the most it’s allowed yesterday just as Goldman Sachs Group Inc. told investors to sell the shares.

Great Wall Motor Co. surged by the 10 percent daily limit, making it the top performer on the CSI 300 Index, after Goldman resumed its coverage of the stock with a sell rating. It rallied 9.28 percent in Hong Kong.

Israel-based Mobileye, which makes technology for autonomous driving, said Tuesday that it signed a memorandum of understanding with Great Wall Motor to develop autonomous driving systems for China.

Most automakers listed on the Shanghai and Shenzhen stock exchanges rallied after the vice chairman of the country’s National Development and Reform Commission said China would introduce policies to boost domestic spending on items including automobiles and home appliances.

Goldman’s thesis is straightforward: China’s passenger vehicle market is heading for a virtual dark age as the economy slows and the end of tax breaks curbs demand. Even by 2021, sales volumes will still be lower than in 2017, analysts including Fei Fang wrote in note dated Tuesday.

Great Wall Motor’s yuan-denominated shares trade at a premium to their Hong Kong-listed equivalent, which Goldman says will limit gains even if the auto market turns around.

(SD-Agencies)