China Battery Shares Drop on Plan to Cut Export Tax Rebates (1)

Chinese battery shares fell after Beijing unveiled a plan to reduce some export tax rebates, while South Korean materials companies advanced.

Contemporary Amperex Technology Co. led the drop with a decline of as much as 4.8% in onshore trading Monday, among the worst performers on the MSCI China Index. Its smaller peers including Eve Energy Co. and Gotion High-Tech Co. also slid more than 4% at one point.

China announced a rejig of its value-added tax rebates on hundreds of export products starting from April. Such discounts on 22 battery-related goods will be cut to 6% from 9%, with ...