The Economic Information Daily reported on the 12th that China's Ministry of Commerce announced last Friday (9th) the outcome of a two-day trade consultation between China and the European Union, stating that an understanding on hybrid vehicle trade has been reached between the two sides. Mainland stock markets opened lower this morning, with the SSE Composite Index down 0.18% at 3,806.98 points, the Shenzhen Component Index down 0.43%, and the ChiNext Index down 0.65%. Early in the session, real estate and semiconductor sectors led the declines, while media and entertainment, and banking stocks performed well.
EU Trade Commissioner Sheehan stated that the number of Chinese hybrid vehicles entering the EU will be halved. According to Bloomberg, the EU plans to cap annual imports of Chinese hybrid vehicles at 350,000 units, effective as early as December 1st, with the quota increasing by 6% annually for four years after the first year. In principle, the quota will apply to all hybrid vehicles, not just those originating from China.
On the 9th, the U.S. International Trade Commission announced it has decided to initiate a Section 337 investigation into certain vertical power supply systems, related components, and computing systems containing these products. The investigation involves companies including Foxconn, Luxshare Precision (02475) (Shenzhen: 002475), Industrial Technology Research Institute (Shanghai: 601138), Quanta Computer, and Delta Electronics. Affected by the news, Luxshare Precision's A-shares and Industrial Technology Research Institute fell in early trading.
Domestically, concerns have been raised over the brake pedal bracket of the Zunjie V800 breaking during testing. On the 10th, four departments including the Ministry of Industry and Information Technology released a draft for public comment, further strengthening the management of innovative automotive design and R&D testing verification. The draft requires automakers to conduct failure mode analyses under complex operating conditions and extreme scenarios, and products failing to meet standards must not be installed in vehicles. The People's Daily published an article the next day stating that the new regulations say no to "quick-made cars" and emphasized that a car's brake pedal "should never break during driving." Meanwhile, according to preliminary data released by the Passenger Car Association, China's passenger vehicle retail sales in September declined 24% year-on-year, while new energy vehicle sales dropped 12% year-on-year. The automotive sector weakened at the market open.
Additionally, the People's Bank of China conducted a 50 billion yuan (RMB, same below) 7-day reverse repo operation today, with the interest rate unchanged at 1.4%. There were 300 billion yuan of reverse repos maturing in the open market today, resulting in a net withdrawal of 25 billion yuan. This week, a total of 302 billion yuan of reverse repos will mature in the open market. (wn)
EU Trade Commissioner Sheehan stated that the number of Chinese hybrid vehicles entering the EU will be halved. According to Bloomberg, the EU plans to cap annual imports of Chinese hybrid vehicles at 350,000 units, effective as early as December 1st, with the quota increasing by 6% annually for four years after the first year. In principle, the quota will apply to all hybrid vehicles, not just those originating from China.
On the 9th, the U.S. International Trade Commission announced it has decided to initiate a Section 337 investigation into certain vertical power supply systems, related components, and computing systems containing these products. The investigation involves companies including Foxconn, Luxshare Precision (02475) (Shenzhen: 002475), Industrial Technology Research Institute (Shanghai: 601138), Quanta Computer, and Delta Electronics. Affected by the news, Luxshare Precision's A-shares and Industrial Technology Research Institute fell in early trading.
Domestically, concerns have been raised over the brake pedal bracket of the Zunjie V800 breaking during testing. On the 10th, four departments including the Ministry of Industry and Information Technology released a draft for public comment, further strengthening the management of innovative automotive design and R&D testing verification. The draft requires automakers to conduct failure mode analyses under complex operating conditions and extreme scenarios, and products failing to meet standards must not be installed in vehicles. The People's Daily published an article the next day stating that the new regulations say no to "quick-made cars" and emphasized that a car's brake pedal "should never break during driving." Meanwhile, according to preliminary data released by the Passenger Car Association, China's passenger vehicle retail sales in September declined 24% year-on-year, while new energy vehicle sales dropped 12% year-on-year. The automotive sector weakened at the market open.
Additionally, the People's Bank of China conducted a 50 billion yuan (RMB, same below) 7-day reverse repo operation today, with the interest rate unchanged at 1.4%. There were 300 billion yuan of reverse repos maturing in the open market today, resulting in a net withdrawal of 25 billion yuan. This week, a total of 302 billion yuan of reverse repos will mature in the open market. (wn)
