Date
19 November 2017
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The Big Picture: GREEN VEHICLE PUSH

China will continue to enhance support for the green vehicle industry in a bid to make the sector a new economic growth engine, Vice Premier Ma Kai {馬凱} said late last week.

Boosting the new energy vehicle sector has been one of the most important decisions taken by the central government, Ma said during the course of a four-day visit to Shenzhen in the southern Guangdong province and Hefei and Wuhu in East China’s Anhui province. Electric vehicle makers should upgrade their technology, use innovative business models and gradually increase their production scale, Ma said during his trip that concluded on Saturday.

Local governments should lower entry barriers for green car makers and help promote the use of the products, said Ma, who is also a Communist Party of China (CPC) Central Committee politburo member. Key industry players should cooperate with one another to jointly achieve breakthroughs in core technology, he said.

The green vehicle industry has huge potential to become a key contributor to the Chinese economy due to rising demand from Western countries for eco-friendly transport, observers say. Among the key players in China right now are Shenzhen-based electric car manufacturer BYD Co. Ltd. (01211.HK) and electric bicycle makers Anhui Lujiya Electric Vehicle Co. Ltd. and Wuhu Hengli Electric Bicycle Industry Co. Ltd.

Before they can receive large orders from global customers, companies need to boost their sales volume in the domestic market. To achieve this, the support of local governments is very essential. Governments should provide tax benefits and land resources to the industry players, as well as subsidies to the end-users.

Several firms have already identified the opportunities in the Chinese market. National Electric Vehicle Sweden, a joint venture formed by Hong Kong-based National Modern Energy Holdings Ltd. and Japan’s Sun Investment LLC, has said that it will launch electric vehicles in China this year. The company noted that China has very ambitious plans to shift its transport fleet into electric vehicles.

New rules prompt IPO hopefuls to delay listings

More than 30 firms approved for listing in China have put their debuts on hold since the China Securities Regulatory Commission released new supervision rules on Sunday, Shanghai Securities News reported Monday. The rules require firms to document the pricing process and roadshows for regulators and post special filings on investment risks for three consecutive weeks if the price-to-earnings ratios are higher than the market average. Five firms that were due to publish their pricing information on the Shenzhen stock exchange Monday decided Sunday to delay the process and reset their initial public offering schedules, the report said.

China to plow ahead with rural land reform in 2014

China will step up rural land reform this year to give farmers more control over their holdings, Shanghai Securities News cited deputy land and resources minister Xu Deming as saying. The government will roll out guidelines this year on the transfer, lease and shareholding of collectively owned rural land set aside for construction. Authorities will also revise the land management law to grant farmers legal rights and draft rules this year for property registration and rural housing, it said.

– Contact HKEJ at [email protected]

JP/AC/RC

 

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