Following comments made by President Xi Jinping that investments into the development of more energy-efficient vehicles is the needed move to improve China’s auto industry, shares at many automakers rose.
Also, Premier Li Keqiang remarked that for the whole Chinese economy to grow, there is a need for timely policy fine-tuning, which leads to rising confidence for outside investors into the local industries. The government is focused on new-energy vehicles as a means to ease the growing threat of pollution, even as consumers are still weary of electric cars and reluctant to purchase them.
“Premier Li’s comment may help the market sentiment to stabilise,” said Castor Pang, head of research at Core Pacific-Yamaichi.
“Premier Li’s remarks gave some good expectations about policy loosening,” said Wu Kan, a manager at Shanghai-based Dragon Life Insurance. “Thematic plays are active in the market.”
The indigenous auto sector spurred interest from investors as Warren Buffett-backed Chinese carmaker BYD came to widespread attention with its new share issue launch on IPO, aiming to further consolidate investments after raising up to $550 million.
Other leaders on Hong Kong trading were Great Wall Motor, the country’s biggest SUV manufacturer, which rose 3% and the Guangzhou Automobile Group, which grew its shares value by 1.7%.