Dow Jones Newswires: China EV makers’ shares rise as Beijing plans further support for auto sector

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Shares of major Chinese electric car makers jumped in Hong Kong, as investors welcomed Beijing’s latest plan to launch more auto consumption stimulus measures.

NIO Inc. NIO, +5.56% soared as much as 7.4% within an hour of trading, and shares were last up 6.7%. XPeng Inc. 9868, +0.32% gained 2.8% and Geely Automobile Holdings Ltd. 175, -0.91% added 2.5%. The U.S.-listed shares of NIO NIO, +8.02% and XPeng advanced 8.0% and 5.5%, respectively, on Wall Street overnight.

The sector’s upturn came after Beijing on Thursday unveiled plans to further boost auto consumption to shore up the economy amid mounting slowdown pressures after a brutal pandemic resurgence and strict movement restrictions earlier this year. The new measures included potentially extending a tax break for new energy vehicle purchases, encouraging companies to offer more discounts, and stepping up the building of EV charging stations.

The auto industry has been a key beneficiary of Chinese authorities’ efforts to support consumption and economic activities. In late May, officials in a State Council meeting said they would cut purchase taxes on non-EV passenger cars for a certain period of time, waiving a total of about $9 billion in taxes.

Write to Yifan Wang at yifan.wang@wsj.com

This article was originally published by Marketwatch.com. Read the original article here.

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