China is contemplating growing tariffs on imported vehicles
Home vehicles profit enormously from the US and Europe
Expectations for a shareholder return plan within the second quarter overlap
A rise of 9.5% was reported in sooner or later
Hyundai Kia Motors headquarters in Yangjae-dong. [이충우 기자]
Hyundai Motor Firm and Kia Motors hit historic highs on the twenty second because of the world auto commerce dispute and shareholder return expectations.
Within the inventory market on the twenty second, Hyundai Motor Firm ended buying and selling at 277,000 gained, up 9.49% from yesterday, and Hyundai Motor Firm 2 Woo B recorded 168,900 gained, up 6.09%. Hyundai Chau rose 5.51%, Hyundai Motor 3woo B rose 5.4%, and Kia closed at 118,900 gained, up 3.93%. Hyundai Motors recorded an intraday worth of 289,000 gained on January 11, 2021, and the closing worth at the moment was 268,500 gained.
From 1 o’clock at the present time, Hyundai Motors confirmed a powerful upward pattern because of the information that China would considerably enhance tariffs on international vehicles and expectations of extra shareholder earnings had been raised in some corners of the market.
China is transferring to answer US tariff retaliation and European Union (EU) commerce sanctions by imposing retaliatory tariffs on imported massive displacement autos.
On this case, it’s advantageous for Hyundai Motor Firm, which has a low share of gross sales in China, nevertheless it has the impact of decreasing the margins of different producers with excessive gross sales in China. As well as, as Hyundai Motors will increase its share of native manufacturing within the US and Europe, it sees a ripple impact as auto tariff retaliation between nations turns into extra intense.
news/cms/202405/23/news-p.v1.20240522.3731277234924bfeb0706a0f6bcc4843_R.png" data-width="733" data-height="491"/> zoom in image In keeping with a report by Hong Kong’s South China Morning Submit on the twenty second, China’s Chamber of Commerce mentioned it could think about briefly elevating tariffs on European and American automakers.
That is contemplating the scenario the place the USA has lately elevated retaliatory tariffs on Chinese language electrical autos and the EU can be making ready preliminary measures in opposition to Chinese language electrical autos that obtain unlawful subsidies from the federal government.
China is reportedly contemplating elevating tariffs to 25% on imported inner combustion engine autos with a displacement of two.5 liters or extra within the quick time period. The plan is to restrict imported fossil gas autos with excessive emissions to be able to cut back carbon emissions within the automobile trade and obtain an environmentally pleasant transition.
Beforehand, on the 14th, US President Joe Biden ordered a rise in retaliatory tariffs concentrating on Chinese language imports in accordance with Article 301 (Tremendous 301) of the US Commerce Act. With this measure, the USA raised the retaliatory tariff imposed on Chinese language electrical autos from 25% to 100%.
The EU additionally started investigating unlawful authorities subsidies for Chinese language electrical autos in October final yr, and plans to finish the investigation by June 6 and impose non permanent tariffs in early July. The EU presently imposes a ten% tariff on Chinese language electrical autos, however imposes a mean tariff of 19% on illegally sponsored imports.
Lim Eun-young, a researcher at Samsung Securities, mentioned, “Hyundai Motors is prone to announce a shareholder worth enhancement plan someday in July or August, and as financial institution shares modify on the twenty second, a sell-off is going on amongst shares associated. to return a shareholder.” He added, “The US “It’s unlikely that China’s tariff enhance can have a major extra influence on the efficiency of Hyundai Motor Firm because the gross sales of automobile corporations and European automobile corporations are already plummeting,” he mentioned.
On at the present time, the KRX Insurance coverage Index fell 5.3% and the KRX Financial institution Index fell 1.5%, with funding provide and demand of value-added beneficiaries flocking to cars, and the costs of monetary shares that had been on the rise to date fell. considerably. On at the present time, some out there predicted that Hyundai Motor Firm would considerably enhance the quantity of dividends and purchase again shares.
Hyundai Motor, which was ninth in market capitalization on the KOSPI as its inventory worth fell to 170,000 gained on issues of a ‘peak’ in 2023, rose to 4th in market capitalization because of the worth enhance inventory on at the present time.
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