Chinese carmakers gain on state measures to boost low-carbon vehicles

Shares of China’s carmakers in Hong Kong surged on speculation on Wednesday that they would be among the first to benefit from new measures to be rolled out by Beijing in an attempt to cultivate widespread use of low-carbon emission vehicles.

BYD, the country’s biggest electric vehicle manufacturer, rallied 4.58 per cent to HK$40.00, the highest level in nearly three months in Hong Kong. Private-owned Geely Auto, the third most traded stock in the city, saw its shares shoot up 15.14 per cent to HK$3.65. BAIC Motor, Beijing’s biggest state-owned automaker, soared by 9.89 per cent to HK$6.78.

China’s State Council will aim to build more charging facilities across the country and support research and development of new energy vehicles, the official Xinhua News Agency reported, citing key takeaways from a meeting chaired by China’s prime minister Li Keqiang on Tuesday.

In mainland markets, Lifan Indusry, a privately-owned motorcycle and automobile maker, climbed 5.58 per cent to 11.35 yuan, while state-owned China Changan Automobile which is involved in manufacturing commercial vehicles, leapt 7.08 per cent to 14.39 yuan.

Aerospace and defense stocks also posted solid gains, with five units under state-owned plane maker AVIC Corporation rising between 2.08 per cent to 4.90 per cent. The long-anticipated state-owned enterprise reform will lead to a most dramatic overhaul of the country’s defence majors and is expected to channel private capital to their business operations, official Shanghai Securities News reported citing Li Jin, chief researcher with a top state think tank.

Shares of commodities giant Glencore shares staged a rebound by lifting 12.79 per cent to HK$9.79 in Hong Kong after slumping the previous session by almost 30 per cent. Glencore said it was capable of weathering the rout in prices of global commodity markets.