** Hong Kong shares of BYD Co 1211.HK fall 4.2% to HK$389, their lowest since May 12, and on course for fifth consecutive session of decline

** Shenzhen-listed stock 002594.SZ falls 2.7% to 351.3 yuan, lowest since April 30

** UOB Kay Hian cut BYD target price to HK$490 from HK$510 saying China automaker stocks plummeted this week amid price war triggered by BYD, worries over the financial soundness of auto OEMs, and the Ministry of Commerce's probe into "zero-mileage second-hand cars"

** "We deem these concerns valid but the risks remain manageable as long as sales keep growing" - UOB

** A large dealer of BYD's cars in the eastern province of Shandong has gone out of business with at least 20 of its stores found to be deserted or shut, government-owned media reported

** Citi keeps "buy" saying more intense competition would accelerate market consolidation and reinforce BYD's market-leading position

** HSBC maintains "buy" saying the price cuts should boost scale, which absorbs part of the margin pressure, with expanding overseas, high-end mix stabilising the blended profit per car

** YTD, Hong Kong stock up 46.3%, Shenzhen shares up 24.8%

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))