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.