Autos rise after energy efficiency plans announced (again)
Auto and power cell shares surged today after the state-press raked up statements already made in January announcing large subsidies for energy efficient vehicles.
The Ministry of Finance and the Ministry of Science and Technology made a joint statement on 23 January, saying the central government will offer a one-off subsidy for the purchase of mixed-power, electric and fuel-cell vehicles.
The program will be put into trial in public transport, taxi industry, postal and urban sanitary services in 13 cities including Beijing and Shanghai.
The statements reappeared today, in almost all new outlets, after Zeng Xiaoan, an official with the Ministry of Finance, mentioned that the plans were "going smoothly" in a press conference not directly related to the scheme.
Power cell shares rose 6.19 percent on average. Jonjee High & New Technology And Industrial Group Co.（SH: 600872）was the first to surge to the 10 percent trading cap.
The company announced yesterday that it will enlarge the capacity of its subsidiary power cell plant to 363 million Ah. Foshan Plastics Group Co. (SZ:000973）also surged to the 10 percent trading limit although it predicted huge loss for the first half of this year. Fengfan Co.（SH:600482）, which provides power cell to the military, also surged to the 10 percent cap in the afternoon.
Auto shares advanced 5.19 percent on average. Beiqi Foton Motor Co.（SH:600166）, China’s biggest commercial-vehicle maker, surged 9.03 percent. Tianjin Faw Xiali Automobile Co.（SZ:000927）rose 7.99 percent. SAIC Motor Co.（SH:600104）, China’s biggest car maker, advanced 7.2 percent.
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