Chinese Automakers Surge After Government Cuts Purchase Tax
- Levy on autos with engines 1.6 liters or less cut to 5 percent
- Auto association lobbied for stimulus as vehicle sales slowed
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Chinese automaker stocks soared after the central government cut a tax on passenger-vehicle purchases and said it will support the adoption of electric vehicles following a slump in industrywide sales.
Geely Automobile Holdings Ltd. jumped 16 percent in Hong Kong, the biggest gain in six years. Great Wall Motor Co., China’s biggest maker of sport utility vehicles, surged 20 percent. Dongfeng Motor Group Co., which has a joint venture with Nissan Motor Co., climbed 15 percent while BYD Co., the biggest maker of electric vehicles, rose 6.8 percent.