Download App

Log in to access Online Inquiry

China Halves Purchase Tax For Passenger Vehicles to Spur Auto Consumption

MT Newswires ·  {{timeTz}}

12:05 AM EDT, 06/01/2022 (MT Newswires) -- China halved the purchase tax for passenger vehicles priced under 300,000 yuan ($44,900) starting Wednesday as part of the government's measures to spur auto consumption, according to a notice from the State Tax Administration on Tuesday.

Eligible vehicles are those with engine displacements within 2 liters purchased from June 1 to Dec. 31, 2022.

The measure comes as the recent COVID-19 outbreaks in China hammered demand for cars in recent months.

In April, China's retail sales of passenger cars plunged 35.5% year over year to 1.04 million units, while output slumped 41.1% year over year to 969,000 units, according to earlier government data.

China's biggest local automakers include Dongfeng Motor Group (SHA:600006, HKG:0489), SAIC Motor (SHA:600104), Chongqing Changan Automobile (SHE:000625), BAIC Motor (HKG:1958), Guangzhou Automobile Group (SHA:601238, HKG:2238), Great Wall Motors (SHA:601633, HKG:2333) and FAW Group (SHE:000800).

The domestic new-energy vehicle market, meanwhile, is dominated by BYD, (SHE:002594, HKG:1211), Tesla China, GAC Aion, and SAIC-GM-Wuling, a joint venture among SAIC, General Motors and Wuling Motors Holdings (HKG:0305).

This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal.

Moomoo is a financial information and trading app offered by Moomoo Techonologies Inc.

In the U.S., investment products and services available through the moomoo app are offered by Moomoo Financial Inc., a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a member of Financial Industry Regulatory Authority (FINRA)/Securities Investor Protection Corporation (SIPC).

In Singapore, investment products and services available through the moomoo app are offered through Moomoo Financial Singapore Pte. Ltd. ("Moomoo Financial SG") regulated by the Monetary Authority of Singapore (MAS). Moomoo Financial SG is a Capital Markets Services Licence (License No. CMS101000) holder with the Exempt Financial Adviser Status. This advertisement has not been reviewed by the Monetary Authority of Singapore.

In Australia, financial products and services available through the moomoo app are provided by Futu Securities (Australia) Ltd, an Australian Financial Services Licensee (AFSL No. 224663) regulated by the Australian Securities and Investment Commission (ASIC). Please read and understand our Financial Services Guide, Terms and Conditions, Privacy Policy and other disclosure documents which are available on our websites and Moomoo Technologies Inc., Moomoo Financial Inc., Moomoo Financial Singapore Pte. Ltd. and Futu Securities (Australia) Ltd are affiliated companies.