CAASNot HalalF
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Compliance Status

Not Halal

Screened on Oct 7, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is China Automotive Systems, Inc. (CAAS) halal? Not Halal. Based on AAOIFI screening, China Automotive Systems, Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Quote this verdict

HalalScreener rates China Automotive Systems, Inc. (CAAS) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Oct 7, 2026. Source: https://halalscreener.app/en/stock/CAAS

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

57.0% of 30.0% limit
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Screened according to AAOIFI Standard 21

What this means for you

Most scholars advise not holding CAAS

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

China Automotive Systems, Inc.

CAAS: Is China Automotive Systems, Inc. Halal?

China Automotive Systems, Inc.

NASDAQConsumer CyclicalCN

$4.48

Market Cap: 135.2M

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About China Automotive Systems, Inc.

China Automotive Systems, Inc. (CAAS) operates as a prominent manufacturer and supplier of diverse automotive systems and components, primarily through its subsidiary network within the People's Republic of China. The company's extensive product portfolio includes a variety of power steering technologies: rack and pinion systems for passenger cars and light-duty vehicles, integral power steering units designed for heavy-duty applications, and various power steering parts specifically for lighter vehicles. CAAS also produces essential sensor modules, comprehensive automobile steering systems and columns, and both electronic and hydraulic power steering systems along with their related components. Beyond steering solutions, the firm develops and offers automotive motors, complex electromechanical integrated systems, and specialized polymer materials. It also provides innovative research and development services focused on intelligent automotive technology. In addition to its manufacturing prowess, CAAS offers vital after-sales support and R&D assistance. The company expands its market reach by supplying automotive parts to North America and Brazil. Its principal customers are Original Equipment Manufacturers (OEMs). China Automotive Systems, Inc. was founded in 1999 and is headquartered in Jingzhou, People's Republic of China.

Sector: Consumer Cyclical · Industry: Auto - Parts

Why this does not pass

  • Interest-bearing debt is 57.0% of market cap, over the 30% AAOIFI limit.
  • Interest-bearing deposits are over the 30% limit.

Screened under AAOIFI Standard 21. The exact figure behind this is part of Pro; the failing check and its limit are always free.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 7, 2026

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Screened according to AAOIFI Standard 21

Compliance History

Not Halal, unchanged since Aug 2026.

No status changes recorded since we began tracking.

Tracked since Aug 2026. Updates automatically on each re-screen.

Fiscal: Q2 2026Data source: FMP
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Frequently Asked Questions

Is China Automotive Systems, Inc. (CAAS) halal to invest in?
China Automotive Systems, Inc. (CAAS) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did China Automotive Systems, Inc. get a F compliance rating?
China Automotive Systems, Inc. (CAAS) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 57.0% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change China Automotive Systems, Inc.'s Shariah verdict?
China Automotive Systems, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is China Automotive Systems, Inc. re-screened for Shariah compliance?
China Automotive Systems, Inc. (CAAS) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 7, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.