Fears of a lengthy global recession are growing. Most leading indicators are heading south. But one of them, car sales, is bucking the trend. In China, the world’s biggest car market, sales are strong enough to suggest a wider sector recovery is under way. There are opportunities here for picky long-term investors.

China’s May car sales are forecast to increase 11.7 per cent to 2.1m units after a 4.4 per cent rise in April. The pace of declines in electric cars has slowed too, as local governments rolled out measures to boost sales.

Hong Kong listed shares in BYD Motors, China’s largest electric car maker, have risen over 42 per cent from March lows, reflecting expectations of more stimulus in the second half. The benchmark Hang Seng index has, in contrast, added just 12 per cent.