Ve­hi­cle sales con­tinue de­cline in Au­gust

China Daily European Weekly - - BUSINESS - China Huarong with­draws ap­pli­ca­tion Reg­u­la­tor ready for all mar­ket out­comes

China’s ve­hi­cle sales fell by 3.8 per­cent in Au­gust to 2.1 mil­lion units from a year ear­lier, con­tin­u­ing the down­ward trend seen in July in the world’s largest ve­hi­cle mar­ket, said the China As­so­ci­a­tion of Au­to­mo­bile Man­u­fac­tur­ers on Sept 12. The fall in Au­gust came in the wake of a 4.02 per­cent fall in July and was the third so far this year, but the as­so­ci­a­tion is main­tain­ing its es­ti­mate of 3 per­cent growth for the year. To­tal ve­hi­cle sales in the first eight months of the year stood at 18.1 mil­lion, up by 3.5 per­cent from the same pe­riod last year, ac­cord­ing to the as­so­ci­a­tion. Xu Haidong, an as­sis­tant to the or­ga­ni­za­tion’s sec­re­tary-gen­eral, said the de­cline in the two months is the re­sult of a com­bi­na­tion of fac­tors, in­clud­ing slower over­all eco­nomic growth and stock mar­ket de­clines. China Huarong As­set Man­age­ment Co Ltd has an­nounced the with­drawal of its A share IPO ap­pli­ca­tion, cit­ing a sig­nif­i­cant de­cline in fi­nan­cial per­for­mance in the first half and un­cer­tainty sur­round­ing dis­ci­plinary in­ves­ti­ga­tions re­lat­ing to its for­mer chair­man. China Huarong, one of the main­land’s four largest State-owned as­set man­age­ment com­pa­nies, made the an­nounce­ment in a post on Hong Kong Ex­changes and Clear­ing Ltd’s web­site on Sept 11. The com­pany “recorded a prom­i­nent de­crease in the in­terim re­sults ... while the for­mer chair­man of the com­pany is cur­rently un­der dis­ci­plinary re­view and su­per­vi­sion in­ves­ti­ga­tions by rel­e­vant au­thor­i­ties. ... Af­ter care­ful stud­ies and dis­cus­sion with the pro­fes­sional par­ties in­volved in the A share of­fer­ing ... the com­pany de­cided to with­draw the ap­pli­ca­tion for the A share of­fer­ing,” China Huarong said in a state­ment. China’s top fi­nan­cial reg­u­la­tory body warned it may take mea­sures to pre­vent un­ex­pected ma­jor shocks in all fi­nan­cial sec­tors, as es­ca­lat­ing Si­noUS trade ten­sions may af­fect mar­ket sen­ti­ment, ac­cord­ing to a state­ment re­leased on the State Coun­cil’s web­site on Sept 10. A meet­ing of the Fi­nan­cial Sta­bil­ity Devel­op­ment Com­mit­tee was chaired by Vice-Pre­mier Liu He on Sept 7. It called for pol­icy ad­just­ments based on “new changes” to the ex­ter­nal en­vi­ron­ment, as well as the do­mes­tic eco­nomic and fi­nan­cial sit­u­a­tion. “But the mag­ni­tude of ad­just­ment should be well man­aged,” said the state­ment.

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