General Motors, Ford Shares Fall Amid Report Of 'Monopolistic Behavior' From GM In China

Shares of General Motors Company GM were trading lower by more than 3.3 percent ahead of Wednesday's market open. The selloff can be attributed to a report that the company may face a penalty from the Chinese government for monopolistic behavior.

Automotive News, citing reports from the China Daily newspaper and a Bloomberg report, wrote that the Chinese government is targeting GM China. Shares of Ford Motor Company F were lower by nearly 2 percent in a sympathy move.

Automotive News added that the Chinese government believes General Motors gave an order to various distributors in the country to fix prices starting in 2014.

The report comes at a strained time between the Chinese government and the U.S. following Donald Trump's victory in the U.S. election. Trump has taken a harsh stance against China and even called to label the country a currency manipulator.

Nevertheless, China's director of the National Development and Reform Commission's price supervision bureau Zhang Handong was quoted as saying no one should "read anything improper" into the timing or target of the penalty.

A Reuters report on Tuesday suggested Trump's tough trade talk could result in retribution from China and did name General Motors as a target.

General Motors was quoted by Automotive News in a statement as saying the company "fully respects local laws and regulations wherever we operate. We do not comment on media speculation."

Ford's chief spokesman for its Asia-Pacific operations was also quoted by Automotive News as saying "we are unaware of the issue."