Economics
China Regulator to Propose 50% Cut to Car Purchase Tax
- Planning body is said to suggest tax cut to 5% from 10%
- Shares of Geely, Volkswagen, Ford rise with other carmakers
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China is considering a tax cut to revive its flagging automotive market, according to people familiar with the matter, lending support to a key industry that’s been damaged by an ongoing trade war with the U.S.
Carmaker shares surged after Bloomberg News reported the proposal, which would stimulate a market they’ve increasingly relied on for growth. Among Chinese carmakers, Great Wall Motor Co. jumped as much as 6.9 percent, Geely Automobile Holdings Ltd. gained as much as 6 percent, and Guangzhou Automobile Group Co. rose as much as 4.4 percent in Hong Kong Tuesday.