Stockmarket money pushing up car sales
The Chinese stock market boom (and subsequent fall) over the past month has made quite a few Chinese people reasonably well off, and they are spending their new found wealth on automobiles.
CHINAS passenger car sales rose 23 percent last month from a year earlier, the fastest pace since January, fueled by auto buyers who were flush with profits from the stock market.
Sales of passenger vehicles, including cars, multi-purpose vehicles and sport-utility vehicles, rose to 488,500 units in May, according to a report yesterday from China Association of Automobile Manufacturers.
Over the first five months, passenger car sales reached 2.57 million units, an increase of 21 percent from a year earlier, Beijing-based CAAM said.
The growth outpaced the associations forecast of 15 percent for Chinas entire vehicle market this year.
Many retail investors sold their holdings and used their profits to buy cars in May before the government employs more measures to cool the soaring stock market, said Rao Da, secretary for the National Union of Passenger Car Market and Information.