Kia and Hyundai see stocks slide

<p>The carmakers lost around five per cent of their value.</p>

Korean car manufacturers Hyundai and Kia have seen their share prices fall on the back of news demand for vehicles could be set to drop in China.

With the world's second largest economy being such a strong market for the two companies, their stocks dropped after a report was published by the Xinhua news agency.

It claimed eight Chinese cities – Tianjin, Shenzhen, Hangzhou, Chengdu, Shijiazhuang, Chongqing, Qingdao and Wuhan – are likely to implement curbs on car sales.

Sales could fall by as much as 400,000 if the plans are implemented, it has been claimed.

Speaking to BBC News, Suh Sung-moon, an analyst at Korea Investment & Securities, said: "China accounts for about 20 per cent of Hyundai Motor's total sales and such news dampens its China sales outlook."

Earlier in the week, it was revealed that Chinese exports fell 3.1 per cent in June, leading to investors having growing fears over the health of the Asian nation's economy.

The Chinese economy is on track to surpass the US to become to biggest in the world.

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