The South China Morning Post has reported that shares of carmakers listed in Hong Kong and on the mainland rose this week after the government said it would give farmers a subsidy of as much as 5,000 yuan for buying a vehicle.
Under the government’s stimulus measures, which also include tax cuts, mainland farmers can save up to 6,900 yuan on the purchase of a 40,000 yuan car.
Beijing said in January it would spend 5 billion yuan to boost vehicle sales in rural areas.
Analysts estimated the stimulus measures would boost vehicle sales in the rural area by around a million units, the SCMP reported.
CHINA: Vehicle subsidy for farmers raises optimism
The South China Morning Post has reported that shares of carmakers listed in Hong Kong and on the mainland rose this week after the government said it would give farmers a subsidy of as much as 5,000 yuan for buying a vehicle.
March 17, 2009