Investors aren’t always the most rational creatures on earth. Just yesterday, BYD, China’s largest EV carmaker, reported a 204% increase in its profit in the first six months of the year, thanks to strong sales. But the price of its Hong Kong-listed stock dropped by 5.7% in late morning trade.

Meanwhile, shares of Hong Kong-listed Geely, China’s largest private carmaker, gained 4.9% Thursday in late morning trade, days after it posted net profit of 4 billion yuan ($569 million) in the first half of the year, down 40% from the same period last year. The automaker said in its earnings report that the decline came as China’s passenger car sales continued to slump in the first half this year.

What gives?

One explanation, at least for BYD, is that the company estimates its profit growth could slow — potentially to a range of between 1.8% and 14.9% in the first three quarters this year, due to China’s phasing out of subsidies.

Read more about what lies behind investor confidence in these two companies later today at Caixin Global.

Contact reporter Tang Ziyi (ziyitang@caixin.com)