China plans new round of rural car subsidies

• China plans to introduce a new round of auto purchase subsidies for rural residents that will cover vehicles with engines smaller than 1.6 liters, Bloomberg reports.
• The country last introduced the subsidies (although not for passenger cars) in the depths of the global financial crisis to help prop up economic growth.
• That spending helped propel the nation past the U.S. to become the largest market in the world for new vehicle sales.
• Chinese automaker shares surged on the news: Geely Automobile (OTCPK:GELYY) +6.2%; Chongqing Changan Automobile +6.1% and BYD (OTCPK:BYDDY) +5.3%.
• Other related tickers: OTC:CQCAF, OTCPK:GWLLF, OTCPK:GWLLY, KNDI, OTCPK:DNFGY, OTCPK:DNFGF, OTCPK:DDAIF, VLKAY, BAMXY, GM.