BYD's Shenzhen listing plan brings up whole battery sector
When BYD Co. (HK:1211), the Chinese battery-maker turned car produced backed by Warren Buffet, announced its plans to issue shares on the Shenzhen stock exchange its share-price surged 14.3 percent - dragging most of the sector up with it.
Hunan Corun New Energy Co. (SH:600478), an auto power battery producer, surged to the 10 percent trading cap. Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co. (SH:600111) climbed 6.10 percent. Jiangsu Guotai International Group Guomao Co.(SZ:002091) added 5.18 percent. China Ritar Power Corp. (OTC:CRTP) rose 4 percent.
The climbs continued today with Coslight Technology International Group (HK:1043) rising 15.1 percent on opening and Hunan Corun New Energy Co., Ltd. (SH:600478) going up 3.5 percent.
Behind these gains lies the realization that the motor industry is increasingly looking for tie-ups with battery-makers in order to secure its future.
A series of recent agreements between auto companies abroad have been enough of a sign:
Toyota has set up a joint-venture with Panasonic, Nissan with NEC and Mitsubishi with GS Yuasa Corp. Volkswagen AG has also agreed a non-equity battery partnership with both Sanyo and Toshiba. It has also said it is "exploring" a third partnership BYD.
As an auto-manufacturing hub, it is likely that more of China's battery manufacturers will be called upon as the car industry is forced to plan ahead.
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