BEIJING听–听Chinese authorities announced measures on Friday intended to help听产辞辞蝉迟听蝉补濒别蝉听of automobiles and听别濒别肠迟谤辞苍颈肠蝉听with the goal of shoring up a sluggish economy, but the听蝉迟别辫蝉听failed to impress investors who have been clamoring for stronger stimulus.
Regions will be encouraged to increase annual car purchase quotas and efforts will be made to support聽蝉补濒别蝉听of second-hand vehicles, said a statement on automobile consumption published by 13 government agencies including state planner National Development and Reform Commission.
As听颁丑颈苍补‘s post-pandemic economic recovery slows, policymakers have identified the country’s automobile sector as a key lever which they want to use to shore up growth. In June, they unexpectedly extended a聽聽on new energy vehicles (NEVs) until 2027.
But domestic consumer demand has remained weak and the world’s largest auto market has been grappling with a price war triggered by Tesla聽in January that has since spread to more than 40 brands offering discounts on their vehicles.
In March, a top industry association urged the auto industry and authorities to聽‘ to ensure the healthy and stable development of the industry.
The Friday statement aimed at encouraging automobile consumption echoed this. “Localities must not roll out protectionist policies and avoid vicious competition,” it said.
A separate statement on supporting聽蝉补濒别蝉听of听别濒别肠迟谤辞苍颈肠蝉听products said authorities would encourage scientific research institutes and market entities to actively apply domestic artificial intelligence (AI) technology to improve intelligence levels of electronic products.
The measures echoed similar ones announced by authorities in recent months and failed to听产辞辞蝉迟听the market, with shares in听颁丑颈苍补鈥檚 automobiles 颈苍诲别虫听.CSI931008聽down 0.3% and the听别濒别肠迟谤辞苍颈肠蝉听颈苍诲别虫听.CSI930652聽falling 0.6%, against a 0.1% rise in the benchmark 颈苍诲别虫听.CSI300.
Investors have said they are disappointed by听颁丑颈苍补鈥檚 weak second quarter growth and want to see stronger stimulus, with some pinning their hopes on the Politburo meeting later this month. – Reuters
