BMW partner warns of profit slump

The partner of BMW AG's joint venture in China expects first-half profit to fall about 40 percent as demand for premium cars slows in the world's largest auto market.

Brilliance China Automotive Holdings Ltd dropped 9.4 percent to HK$10.28 ($1.3) in Hong Kong trading on Tuesday, after warning about higher expenses in a statement to the stock exchange. The benchmark Hang Seng Index slid 0.4 percent.

The profit warning is the latest sign that demand in China for luxury cars is declining amid a slowdown in economic growth and volatility in the stock market.