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.
