Automakers: SAIC Motor Corp. (600104) (600104 CH), China’s largest carmaker, advanced 5.2 percent to 15.54 yuan, its biggest gain since Jan. 17. FAW Car Co. (000800 CH), which makes passenger cars in China with Volkswagen AG, gained 5.2 percent to 12.05 yuan. Chongqing Changan Automobile Co. (000625) (000625 CH), the Chinese partner of Ford Motor Co. and Mazda Motor Corp., surged 7.2 percent to 5.38 yuan.
The government will provide subsidies to buyers who trade in used vehicles for fuel-efficient ones in rural areas, the Reuters reported, citing an unidentified government official.
Infrastructure-related stocks: Anhui Conch Cement Co. (600585) (600585 CH), China’s biggest cement maker, added 5.8 percent to 17.87 yuan. Gansu Qilianshan Cement Group Co. (600720 CH) advanced the maximum 10 percent to 13.42 yuan. China Railway Erju Co. (600528 CH) surged 10 percent to 8.07 yuan.
Spending on investment will range from 1 trillion yuan ($157.7 billion) to 2 trillion yuan, compared with the 4 trillion yuan stimulus enacted in response to the global financial crisis, Dong Tao, a Hong Kong-based economist, said in a research note today.
BYD Co. (002594) (002594 CH), the automaker part-owned by Warren Buffett’s Berkshire Hathaway Inc., dropped 2.6 percent to 23.75 yuan. A BYD e6 taxi caught fire after a drunk driver of a Nissan Motor Co. GT-R struck the cab, killing three passengers, the Southern Metropolis Daily reported yesterday.
“The car caught fire after being hit, but there was no explosion,” Paul Lin, BYD spokesman, said in a telephone interview today. “We hope to get details of the incident from the traffic management bureau as soon as possible to figure out what the causes were.”
Hafei Aviation Industry Co. (600038) (600038 CH) jumped by the 10 percent daily limit to 19.28 yuan after the company announced a plan to buy a helicopter business worth 3.2 billion yuan from its parent through a share swap. The stock resumed trading today after being suspended since Feb. 6.
ZTE Corp. (000063) (000063 CH), China’s second-biggest phone- equipment maker, lost 1.9 percent to 15.19 yuan. The Financial Times reported that the European Union was preparing to start a trade case against ZTE and Huawei Technologies Co.
--Zhang Shidong. Editor: Allen Wan
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