Today, Bloomberg quoted people familiar with the matter as saying that the NDRC has proposed to top management to reduce the purchase tax on passenger vehicles up to 1.6 litres from the current 10% to 5%. The scheme has not yet been finalized.
Earlier this month, Reuters wrote that the China Automobile Circulation Association had proposed to the NDRC to cut the tax on car purchases in half to stimulate the weak car market, but the news was denied by the CAAC, saying it was only submitting a report to the NDRC and putting forward proposals to adjust the tax policy on used cars in view of the current situation.
At present, the European auto stock index has risen 3.9%, the best single day performance since July 2016. BMW, Daimler and Volkswagen have risen by over 5% in Europe. General Motors shares rose 3.8% before the US stock market, and Ferrari rose 2.5% in the US.
News From Wall Street.