Chinese battery shares fell on Monday after Beijing unveiled plans to scale back export tax rebates on a range of products, pressuring expectations for the sector’s overseas profitability, while South Korean materials makers moved higher.

Contemporary Amperex Technology Co. led the declines, dropping as much as 4.8% in onshore trading, making it one of the weakest performers on the MSCI China Index. Smaller rivals including Eve Energy Co. and Gotion High-Tech Co. also slid more than 4% at one point during the session.

China said it will revamp its value-added tax rebate scheme on hundreds of export items starting in April. Under the new plan, rebates on 22 battery-related products will be cut to 6% from 9%, with a full removal scheduled for 2027 — a move that analysts say could squeeze margins for exporters and accelerate consolidation across the industry.