Interest in electric cars boosts markets

Yuan Luhang
Orient Securities expect more than 180 million electric cars to be sold in China next year, a turning point for EV consumption, with the global number reaching  430 million.
Yuan Luhang
Interest in electric cars boosts markets

China stocks rose on Wednesday led by manufacturers and suppliers of electric vehicles.

At close, the Shanghai Composite Index was up 0.76 percent at 3,382.32 points. The Shenzhen Component Index was higher by 0.96 percent at 14,015.02 points. The bluechip CSI300 index was up 0.85 percent at 5,007.12 points.

Turnover on the two major bourses expanded to 929.0 billion yuan (US$141.43 billion).

Foreign investors bought 4.33 billion yuan in overseas capital via Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.

Most sectors gained with gainers outnumbering losers by 950 to 780 on the Shanghai bourse and 1,183 to 1,071 in Shenzhen.

Gains were led by manufacturers and suppliers of electric vehicles. Qingdao TGOOD Electric Co Ltd, an EV charging pole maker, soared 14.8 percent to touch its highest in nearly five years, while BAIC Bluepark New Energy Technology Co Ltd, the EV manufacturing unit of state-owned BAIC Automotive Group, hit its highest level since January 2016.

“More than 180 million electric cars in China are expected to be sold next year while globally the number is expected to reach 430 million. 2021 will be a turning point for EV consumption, as consumers’ buying habits have been formed with EV technologies becoming more advanced and government offering consumption subsidies,” Orient Securities said in a note.

Liquor makers suffered losses after Tuesday’s strong performances. Shares of Kweichow Moutai shed over 2 percent.

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