HK Stock Market Move | Lithium battery concept stocks collectively fell as the consumption tax on lithium batteries is about to be restored, which may lead to significant differentiation in tax burdens.

Lithium battery concept stocks collectively declined. As of the time of publication, Ganfeng Lithium Group (01772) fell by 4.41%, trading at HK$37.28; CALB (03931) dropped by 3.84%, at HK$20.02; Contemporary Amperex Technology (03750) decreased by 3.15%, at HK$630; Tianqi Lithium Corporation (09696) dropped by 3.13%, at HK$34. In terms of news, the consumption tax on lithium batteries will be reinstated starting in September. Analysts have pointed out that the policy adjustment will have the most direct impact on the production end of power batteries. With the current consumption tax rate of 4%, the comprehensive reinstatement will lead to a noticeable increase in the tax burden for battery production companies. However, leading companies have the capability to pass on most of these costs to automotive manufacturers, while second and third-tier manufacturers may be forced to bear a higher proportion themselves. It is worth noting that Cui Dongshu, Secretary-General of the Passenger Car Association, believes that the levying of the lithium battery consumption tax will significantly benefit vehicle manufacturers with their own battery research and production capabilities, further prompting mainstream car manufacturers to venture into battery manufacturing.