China EV Stocks Surge After Beijing’s Plan to Boost Sector’s Growth

Hong Kong, China – Hong Kong-listed China EV stocks saw a rise in late morning trading after China’s commerce ministry revealed its plan for “healthy development of new energy vehicles” in the country. Shares of BYD Company rose 2.7%, Nio jumped 3.3%, while Xpeng and Li Auto gained 1.2% each.

The plan for the healthy development of new energy vehicles is expected to promote the transformation and upgrading of the automobile industry and play an important supporting role in stabilizing and optimizing the structure of foreign trade, according to the statement from China’s commerce ministry.

Earlier this year, BYD produced more than 3 million new energy vehicles in 2023, surpassing U.S. EV leader Tesla’s production numbers for a second straight year. This reflects the growing competitiveness of Chinese electric vehicle companies in the global market.

As a result of the news, the Hang Seng index gained 0.3%, while the CSI 300 index added 0.4% as investors reacted positively to the announcement and the prospects for growth in the sector.

The rise in Hong Kong-listed China EV stocks signifies the potential for significant growth and development in the electric vehicle industry in China, reflecting a shift in the global market as Chinese companies become key players in the industry.

This announcement comes at a crucial moment when the push for electric vehicles is gaining momentum globally, and Chinese companies are poised to be major players in the industry, making significant contributions to the transformation and growth of the sector.