(Tiper Stock Exchange) – Beijing announced today some measures aimed at increase sales of automobiles and electronics, to support growth of the economy which has slowed down. A package of measures which, however, did not impress investors, who were hoping for a stronger stimulus.
The package is aimed at encourage the purchase of cars and also to support the purchase of second-hand vehicles. The Chinese authorities, in fact, have identified the automotive sector as key lever to revitalize growth economy and therefore, already in the month of June, they had unexpectedly extended until 2027 atax relief on the purchase of electric vehicles.
But domestic demand remained weak and the market was also affected by the price war triggered by Tesla, which has failed to revive consumer demand and restart sales. .
“It is unlikely that these incentives will increase consumption significantly, as consumers are still generally reluctant to spend, lacking confidence in the economic recovery,” investment bank UBS commented in a statement.