FRANKFURT (dpa-AFX) - Tailwinds from the important sales market China gave the German automotive sector a boost on Wednesday. The share prices of the major manufacturers rose sharply in some cases. However, the shares of supplier Continental dropped after a negative comment from a major US bank. Shares in car chip manufacturer Infineon, on the other hand, benefited from a positive analyst opinion.

The Chinese car market performed better in March than previously estimated. According to preliminary data from the association, car deliveries are likely to have risen by seven percent year-on-year. An early estimate had assumed an increase of just under four percent. Beijing also wants to make it easier to obtain credit for private car purchases in order to stimulate the market.

As a result, investors pounced in the middle of the week: in the leading Dax index, the premiums ranged from 0.6 percent for Porsche AG to 1.6 percent for Volkswagen and 2.8 percent for BMW. Only Mercedes-Benz lagged somewhat behind. China continues to be the most important single market for German car manufacturers.

Infineon shares rose by 2.6 percent. The investment bank Morgan Stanley advised investors to overweight the shares in their portfolios. Much of the bad news is already priced into the share price, wrote analyst Lee Simpson. This applies in particular to concerns about declining market share in China. Statements from the company also indicate that the order backlog has bottomed out. If inventories are also reduced, margins could also recover.

Continental, on the other hand, suffered a 2.5 percent discount due to a skeptical outlook from the bank JPMorgan for the upcoming quarterly results. Analyst Jose Asumendi expects Continental and other suppliers to make a weak start to 2024, citing higher wage costs, generally rising additional costs and negative currency effects./bek/men/jha/