Chinese auto stocks gain after Beijing indicates more support for industry
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China's Ministry of Commerce announced new steps to support automobile sales in the nation that will include extending a tax break and boosting credit options. The government is also studying extending tax exemptions for new energy vehicles and planning for more charging stations.
A Ministry official also stated that China will work to ensure supply and stable pricing of auto chips and related raw materials.
Crucial for helping with demand, the auto purchase tax for cars priced under 300,000 yuan ($45K) with 2.0-liter or smaller engines will stay at 5%, while many EV and hybrid models will continue to have no tax applied.
Shares of Great Wall Motor (OTCPK:GWLLF) rose 6.37% in Hong Kong trading, BYD Company Limited (OTCPK:BYDDF) gained 2.39%, and Dongfeng Motor Group Company (OTCPK:DNFGF) tracked 2.45% higher. In premarket trading in the U.S., Nio (NIO) rose 2.35%, Li Auto (LI) was up 1.35%, and XPeng (XPEV) rallied 3.84%. Tesla (TSLA) rose 1.10% in the early session with China a crucial part of the bull thesis on the stock.
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