China's electric car makers' shares soar
Surge comes after government official said China had begun looking at a ban on traditional petrol-engine cars
China’s new-energy auto firms saw shares surge in Monday morning trade, extending recent strong gains, after a government official said over the weekend that China had begun looking at a ban on traditional petrol-engine cars.
The Chinese electric-car maker BYD, backed by the US billionaire Warren Buffet, saw its shares jump, while lithium products maker Jiangxi Ganfeng Lithium rose more than 5 per cent to a record high.
China has begun studying when to ban the production and sale of petrol cars, the official Xinhua news agency reported on Sunday citing a vice minister who it said predicted “turbulent times” for car makers as they were forced to adapt.
Xin Guobin, vice minister of the ministry of industry and information technology, did not say when the world’s largest car market would implement such a ban. Britain and France will ban new petrol and diesel cars from 2040.
Mr Xin said the ministry had started research and will look to draw up a timeline with relevant departments.
An index tracking new-energy vehicles makers shot up nearly 4 per cent early on Monday to a 14-month high, having gained over 20 per cent this year.
BYD jumped 4.1 per cent and 5.9 per cent in Shanghai and Hong Kong, respectively. Ganfeng Lithium was up over 5 per cent, having seen its shares rocket nearly 300 per cent so far this year.
Updated: September 11, 2017 10:34 AM