Carmakers rise after China vows to boost spending on autos as car sales fall for the first time in 27 years
- The national economic planning agency says it will introduce policies to boost domestic consumption, without giving details
- Domestic buying interest is hurt by slowing growth and the impact of US-China trade war
Mainland Chinese carmakers got a shot in the arm on Wednesday, as their shares surged after the national economic planning agency said it would make plans to bolster domestic spending on autos.
But whether the rally is sustainable remains to be seen, with incentive details yet to be unveiled.
Ning Jizhe, a vice-chairman of the National Development and Reform Commission, told state-owned China Central Television on Tuesday evening that spurring auto sales would be part of the efforts to expand domestic demand, and in turn boost the world’s second-largest economy.
He did not elaborate on the details, but the verbal support had been enough to drive up prices of auto stocks.
H shares of Geely, one of the most successful mainland carmakers, climbed 8.4 per cent to HK$11.08 (US$1.42) on Wednesday, partially recovering the previous day’s losses.
