Chinese automotive shares were lower in Hong Kong on Tuesday, with analysts warning that Guangzhou’s weekend announcement of caps on new vehicle registrations could halve the number of new cars sold in the city.
On Saturday, Guangzhou municipal officials unveiled restrictions on new car registrations saying the move was necessary to help ease traffic congestion and reduce air pollution.
The restrictions, which will limit the number of new passenger car registrations at 120,000 annually, and which took effect Sunday, mean that Guangzhou is the third Chinese city to impose vehicle such caps following similar moves by Beijing and Giyang, according to the Xinhua news agency.
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Nomura said the new rules will limit new passenger vehicle registrations to about half the rate o Read More..