(Yicai) April 12 -- Shares in air conditioner manufacturer Jiangsu Chunlan Refrigerating Equipemtent, kitchen equipment maker Zhejiang Sanfer Electric and other Chinese white goods makers surged today after the country’s macro-economic planner said that it will roll out financial incentives to encourage the exchange of old consumer goods with new ones to boost consumption.

Chunlan’s share price [SHA: 600854] surged by the exchange-imposed limit of 10 percent to hit CNY4.70 (USD0.65), Sanfer’s stock price [SHA: 605336] also soared 10 percent to reach CNY13.81, while small home appliance manufacturer Aishida [SHE: 002403] closed up 7.1 percent at CNY9.17 (USD1.20).

Specific measures for the upgrading of consumer products will be introduced in the next few days, Zhao Chenxin, deputy director of China's National Development and Reform Commission, said yesterday.

China is implementing programs for equipment renewal in the industrial, building and civil construction sectors, Zhao said. And action plans for energy conservation and carbon reduction in key projects for transportation, education, tourism and medical care are being formulated.

The upgrading of equipment is a huge market with an obvious contribution to economic growth, Zhao said. Demand for the replacement of machinery in the automobile and home appliance sectors is over CNY1 trillion (USD138 billion) a year and that in key industrial and agricultural fields is around CNY5 trillion (USD691 billion) a year.

The Shenwan Home Appliances Index, which tracks the stock prices of white goods firms, rose 40.4 percent during the last round of subsidies, according to Orient Securities. If the subsidies reach CNY30 billion (USD4.1 billion) this time round, the home appliance market could reach CNY270 billion.

Editor: Kim Taylor