Surging car makers give Shanghai market biggest boost in one month

By Ye Zhen | July 14, 2014, Monday |

Online Edition

SHANGHAI stocks gained the most in more than one month today as automakers surged after the government unveiled measures to promote new-energy cars.

The key Shanghai Composite Index rose 0.96 percent, the biggest advance since June 10, to 2,066.65 points. Turnover was 96.4 billion yuan (US$15.5 billion).

New-energy cars, including electric, plug-in hybrids and fuel-cell models, should account for at least 30 percent of all official sedans to be purchased between 2014 and 2016, according to a circular issued yesterday by five ministries and commissions. The percentage of electric cars will be increased every year after 2016.

The circular came as the government’s latest effort to popularize clean-energy vehicles and to fight air pollution. Last week, the government said it would waive taxes on purchases of green-energy cars from September 1.

“The circular shows the government’s determination to popularized clean-energy vehicles and will encourage ordinary people to buy new-energy cars,” Ping An Securities analysts said in a note today.

“We are optimistic about investment in new-energy vehicle industry chain,” they said.

Carmakers led the market rally. Anhui Jianghuai Automobile surged by the daily limit of 10 percent to 12.34 yuan. Liaoning SG Automotive Group leapt 10 percent to 4.82 yuan. Guangzhou Automobile Group climbed 8.2 percent to 8.33 yuan.

Producers of electric-car recharging equipment also advanced. Beijing Dynamic Power leapt 10 percent to 14.95 yuan. Guodian Nanjing Automation Co rose 5.8 percent to 5.62 yuan.

Finance

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Surging car makers give Shanghai market biggest boost in one month

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