China's electric car makers' shares soar

Surge comes after government official said China had begun looking at a ban on traditional petrol-engine cars

epa06189305 A Tesla electric car parks at a charging station in Berlin, Germany, 07 September 2017. German inner-cities suffer under high air pollution caused by nitrogen oxide emissions of Diesel engines. Members of German government agree that banning Diesel cars from driving in German cities should be preferably avoided by finding technical solutions to reduce their pollutant emissions. According to information of German  Federal Office for Motor Traffic (Kraftfahrtbundesamt) 34,022 electric cars were registered in Germany on 01 January 2017. German government's target is reaching one million electric cars on German roads by 2020.  EPA/ALEXANDER BECHER
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China’s new-energy auto firms saw shares surge in Monday morning trade, extending recent strong gains, after a government official said over the weekend that China had begun looking at a ban on traditional petrol-engine cars.

The Chinese electric-car maker BYD, backed by the US billionaire Warren Buffet, saw its shares jump, while lithium products maker Jiangxi Ganfeng Lithium rose more than 5 per cent to a record high.

China has begun studying when to ban the production and sale of petrol cars, the official Xinhua news agency reported on Sunday citing a vice minister who it said predicted “turbulent times” for car makers as they were forced to adapt.

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Read more:

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Xin Guobin, vice minister of the ministry of industry and information technology, did not say when the world’s largest car market would implement such a ban. Britain and France will ban new petrol and diesel cars from 2040.

Mr Xin said the ministry had started research and will look to draw up a timeline with relevant departments.

An index tracking new-energy vehicles makers shot up nearly 4 per cent early on Monday to a 14-month high, having gained over 20 per cent this year.

BYD jumped 4.1 per cent and 5.9 per cent in Shanghai and Hong Kong, respectively. Ganfeng Lithium was up over 5 per cent, having seen its shares rocket nearly 300 per cent so far this year.

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