Chinese electric vehicle (EV) stocks surged in Hong Kong following reports of new government measures aimed at accelerating the development of the new-energy vehicle sector.
The state-backed Xinhua News Agency reported on Tuesday that central government agencies plan to increase the purchase of new-energy vehicles as part of broader efforts to promote the industry.
Government mandates at least 30% of new vehicle purchases to be EVs
A key highlight from the government guidelines, dated September 27, is the directive that EVs must constitute no less than 30% of all new vehicles purchased annually by government agencies.
In addition, the plan encourages the development of EV infrastructure, including the construction of new charging stations, to make the transition to electric vehicles smoother for consumers.
These measures are part of China’s broader strategy to lead in green technology and meet its carbon neutrality goals.
The government’s increased focus on new-energy vehicles has injected optimism into the market, reflected in the stock price movement of major Chinese EV companies.
NIO, Xpeng, Li Auto, and BYD see stock gains
Following the news, NIO Inc. saw its stock jump as much as 13% in Hong Kong, becoming the top performer on the MSCI China Index.
Similarly, Xpeng Inc. gained up to 8%, and Li Auto Inc. saw an increase of over 2%. BYD Co., a leading player in the sector, also advanced by 1.8% as it prepared to release its third-quarter earnings on Wednesday.
This rally highlights investor confidence in the Chinese EV sector, driven by expectations of increased government support and market demand for cleaner technologies.
The boost to stock prices comes amid ongoing efforts by the Chinese government to reduce emissions and increase EV adoption across the country.
Charging infrastructure key to supporting EV adoption
In addition to mandating EV purchases, the guidelines emphasize the need to expand charging infrastructure to ensure smoother usage of electric vehicles.
This is expected to encourage both private and commercial users to transition to EVs, further supporting the growth of the industry.
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