BYD's share price raced to a record high yesterday, driven by market bullishness about the mainland carmaker's electric car hopes.
The stock rose 11.01 per cent to HK$31.75 before closing 3.85 per cent up at HK$29.70, its highest since listing in Hong Kong in July 2002. The shares have climbed 63.01 per cent since April 27.
'There has been news about the Chinese government providing subsidies for electric cars. That is why BYD's share price has been so strong over the past few days,' said Credit Suisse analyst Gabriel Chan.
China Central Television reported yesterday the government had set a target for the country to produce 500,000 alternative-energy cars annually by 2011, as part of its plan to make the country one of the world's leading producers of hybrid and electrical vehicles within three years.
That came on top of a report in the People's Daily that Shanghai residents would be eligible for subsidies of up to 20 per cent for purchases of alternative-energy vehicles.
Meanwhile, Chongqing has announced subsidies of up to 43,000 yuan (HK$48,848) for each purchase of a hybrid car produced by Changan Auto.
