Automaker Stocks Surge on Reports China Might Extend Electric Vehicle Tax Exemptions

SAIC-GM-Wuling Automobile Co. electric vehicles are plugged in at charging stations at a roadside parking lot in Liuzhou, China, on Monday, May 17, 2021. Photo: Bloomberg

(Bloomberg) — Shares of Chinese automakers jumped after state television reported Wednesday evening that the government may extend tax exemptions on electric-car purchases in a bid to boost the auto sector.

Li Auto Inc. soared as much as 8.7% in Hong Kong, Xpeng Inc. added 6.2% and BYD Co. rose 2.5%. Singapore-traded shares of Nio Inc. gained 4%. Suppliers including Changzhou Xingyu Automotive Lighting Systems Co. and Tianrun Industrial Technology Co. also gained, while battery giant Contemporary Amperex Technology Co. Ltd. rose up to 3.2% in Shenzhen after a share sale.

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