Shanghai shares edge up amid expected new policy for new energy vehicles

Shanghai shares rose today after the Chinese government said it would boost the development of new energy cars.

The Shanghai Composite Index added 0.33 percent to close at 3,376.42 points today.

Xin Guobin,vice minister of industry and information technology, said on Saturday that China would unveil a new-energy credit policy to boost the development of new -energy cars.

The new policy envisages electric and hybrid gasoline-electric vehicles to take up 8 percent of each camaker’s output next year. Carmakers that fail to meet their target could buy credits from competitors with a surplus.

This new policy is expected to motivate investors in the carmaking sectors in the short term, said YD Investment Consulting, a domestic consultancy.

Ningbo Joyson Electronic Corp, a car component maker, jumped by the daily limit of 10 percent to 35.27 yuan (US$5.41), while Guangzhou Automobile Group Co grew 4.67 percent to 27.33 yuan.