Kandi Technologies Group Inc., the second worst-performing U.S.-traded Chinese stock this year, rose to one-week high as the company said 2,000 of its electric vehicles are to be used for public transit in Kunming city.
The stock gained 6 percent to $8.07 on Monday. A Bloomberg gauge of Chinese stocks traded in New York jumped 1.9 percent in its third straight gain.
Kandi, which earlier this month slumped to the lowest level since 2013, has rebounded 12 percent as the company announced orders received through joint ventures. Kunming, the capital of Yunnan Province, will use them in a “micro public transportation” project, the company said in a statement Monday. That came a week after it unveiled an $89 million deal for 4,000 units.
These are “pretty decent-sized orders, and it’s really positive for the company,” Steve Man, a Hong Kong-based Bloomberg Intelligence analyst, said by phone. “The government continues to be very generous to the electric-vehicle makers and also consumers. Kandi is just one example of China’s electric-vehicle market, which has grown two to three times over the past year.”
China has been encouraging electric-car use to help cut emissions and reduce pollution through subsidies to consumers as well as incentives to manufacturers. Central and local governments have offered incentives that cut prices by as much as 60 percent, according to data compiled by Bloomberg Intelligence. Shipments to dealers surged 3.4 times in the year through April.
Kandi’s gain on Monday reduced its decline this year to 42 percent. American depositary receipts of BYD Co., a Warren Buffett-backed electric-car maker, rose 0.4 percent in over-the-counter trading to $10.15, taking its three-day gain to 27 percent.
The Bloomberg China-US Equity Index rose to 125.18. E-Commerce China Dangdang Inc., an online retailer, surged 6.2 percent to $6.98, the best performance on the index. Dangdang, which received a buyout offer of $7.812 per ADR from its chairwoman as well as chief executive officer on July 9, said on Monday the board set up a special committee of three independent directors to consider the proposal.
The Deutsche X-trackers Harvest CSI 300 China A-Shares ETF slid 0.9 percent to $42.86. Traders pulled $112.7 million from the largest exchange-traded fund tracking mainland Chinese stocks in the five days through Friday, a second-straight weekly outflow.