BEIJING, June 24 China's top economic planner is
appealing to adjust or scrap the Beijing municipal government's
policy to limit new car quotas, the National Business Daily said
In a report submitted to China's State Council, the National
Development and Reform Commission also linked Beijing's steps to
tackle ever-worsening traffic gridlock to slowing auto sales in
the country, the newspaper said.
The NDRC along with other unspecified organisations were
also appealing to make adjustments to similar policies by other
local governments, it said, but did not elaborate.
NDRC and Beijing city government officials could not be
reached immediately for comment.
Geely Automobile Holdings Ltd surged 8.1 percent
to HK$3.09 by mid-afternoon and Guangzhou Automobile Group Co
Ltd was up 8.0 percent at HK$9.10. The blue chip Hang
Seng Index rose 1.4 percent.
Mainland listed auto stocks rose more moderately. SAIC Motor
gained 4 percent to 19.2 yuan and FAW Car
rose 3.9 percent to 14.4 yuan, both outpacing the
The Chinese central government in early 2009 issued a raft
of stimulus measures, including tax incentives for small cars,
which helped China surpass the United States as the world's top
It scaled back the incentives in 2010 and scrapped them
completely at the beginning of this year.
Automobile demand has been cooling down, with monthly sales
in May declining for the first time in more than two years.
Industry observers expect slow sales to continue into the
summer months followed by a mild rebound in Autumn.
(Reporting by Fang Yan and Ken Wills; Editing by Jacqueline