(Yicai Global) Jan. 13 -- China will maintain a stable new energy vehicle subsidy policy this year to ensure healthy development, according to a minister. NEV shares rose.
China will refrain from significant subsidy cuts to stabilize market expectations, Miao Yu at the Ministry of Industry and Information Technology said at a conference on Jan. 11.
Shares of China's car manufacturers, led by NEV makers, responded to the news by jumping this morning. BYD [SHE:002594] and BAIC Bluepark New Energy Technology [SHE:600733] both hit the 10 percent daily limit up by the lunch bell.
China's NEV sales decreased for the first time ever last year amid slowing economic growth and reduced financial contributions from the government.
Supportive policies, especially subsidies, play a very important role in fostering consumer spending and driving industrial development, China National Radio reported on its website, citing an MIIT official who wished to remain anonymous.
Industrial players should step up innovation, improve product quality, and expand to promote the high-quality development of China's NEV sector, Miao added.
Editor: Emmi Laine