, Columnist
Carmakers’ China Tax Joy Will Be Short-Lived
The market has matured and demand is weaker, meaning this measure will be less effective than past rounds of stimulus.
Shares of auto companies are surging. That's optimistic.
Photographer: AFP/Getty Images
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Beijing is preparing to give the world’s largest car market a nudge, after months of data pointing to a sustained slowdown. Investors shouldn’t heave a sigh of relief just yet.
The National Development and Reform Commission proposes to halve the tax on auto purchases to 5 percent from 10 percent, Bloomberg News reported, citing people familiar with the matter. Shares of Chinese and global carmakers from Geely Automobile Holdings Ltd. and Volkswagen AG to BMW AG jumped, paring their declines over the past year.