Preliminary figures for July show vehicle sales in China advancing for a fourth straight month as buyers gradually return to auto showrooms.
The figures are good news for China’s economy as a whole, which looks to have returned to growth–very modest growth–as the coronavirus pandemic eases in the country
Sales of passenger cars such as sedans and SUVs, as well as commercial vehicles, increased 14.9% in July from July 2019 to 2.08 million units, the China Association of Automobile Manufacturers said citing preliminary figures. From January to July, vehicle sales declined by 12.7% to 12.3 million units in the world’s largest car market.
The sales pick up is also a result of government programs that offer tax rebates to attract car buyers. Automakers, which suspended production during the worst of the pandemic, are now offering big discounts to help sales recover.
The iShares China Large Cap ETF (FXI), which tracks China’s biggest companies, was ahead 13.63% for the last three months as of the close on August 5. This ETF is aa member of my Perfect 5 ETF Portfolio.