Shares in new-energy auto firms in China saw a surge in morning trade on Monday on the news over the weekend that the government was looking into banning traditional petrol-engine cars.
BYD Co Ltd, a Chinese electric-car manufacturer backed by United States billionaire Warren Buffet, saw a jump in shares, along with lithium products maker Jiangxi Ganfeng Lithium Co Ltd, which reached record highs with a five per cent increase.
BYD shares saw a jump of 4.1 per cent in Shanghai and 5.9 per cent in Hong Kong, while Ganfeng Lithium’s five per cent gain saw its shares rocket up nearly 300 per cent so far this year.
Deputy minister of Industry and Information Technology Xin Guobin is reported by Xinhua news agency on Sunday as saying that car manufacturers were facing “turbulent times” as they were being forced to adapt.
Xin did not say when the ban would be implemented, only that the ministry had begun to research a possible ban and will look to draw up a timeline with relevant departments.
Britain and France have already announced a plan to ban new petrol and diesel cars from 2040.
China is the world’s largest car manufacturer, Reuters reports.