Kandi Technologies Group Inc. (KNDI) climbed in U.S. trading while BYD Co. (BYDDF) advanced on optimism China’s support to build more battery charging facilities will spur demand for electric vehicles.
Kandi, a maker of alternative-energy cars, rose 4.5 percent in New York yesterday, the most in a week. Shenzhen-based BYD, which is partly owned by Warren Buffett’s Berkshire Hathaway Inc. (BRK/A), rallied the most in a month in over-the-counter trading. Social media operator Renren Inc. (RENN) climbed to the highest in seven weeks. The Bloomberg China-US Equity Index added 0.2 percent to 117.54.
China is considering providing as much as 100 billion yuan ($16 billion) in funding to build more electric-car charging facilities, according to two people familiar with the matter who asked not to be identified because the discussions are private. The support for the electric-car industry forms part of Premier Li Keqiang’s push to rein in pollution in China, the world’s biggest carbon emitter, while moving forward at the same time with goals of urbanizing the country.
“The government seems to be taking an early stand on setting the direction for vehicles in China with policies that encourage the addition of an electric infrastructure,” David Smith, a portfolio manager at Greentech Capital Advisors in New York, said by e-mail. “China is seeing massive urbanization push and also a problem around air quality that is a catalyst to move forward on lower emission vehicles alongside lower emitting renewable generation sources for electricity.”
Source: http://www.bloomberg.com/news/2014-08-26/china-s-kandi-rises-on-electric-car-outlook-as-byd-gains.html
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