- China says it will tax small cars at 7.5% next year in a move that could put a dent into sales.
- The new tax is below the 10% rate which was set to go into effect on January 1, but above the 5% rate that has been supporting demand since October 2015. Auto sales in China are up over 15% YTD.
- Domestic Chinese automakers fell today in Hong Kong, led by a 4.47% drop in Geely Automobiles Holdings. GM is down 2.84% premarket, while Ford is 1.17% lower. An anti-trust investigation by Chinese regulators into U.S. automakers is also in the mix today.
- Related automaker stocks: OTC:CQCAF, OTCPK:GWLLF, OTCPK:GWLLY, OTCPK:GELYF, OTCPK:GELYY, OTCPK:BYDDY, OTCPK:BYDDF, KNDI, OTCPK:DNFGY, OTCPK:DNFGF, OTCPK:DDAIF, VLKAY, OTCPK:BMWYY, GM, OTCPK:GNZUF, OTCPK:GNZUY, TSLA, F, OTCPK:NSANY, TM.