Shanghai shares up on gains of car makers

Shanghai stocks rallied this morning as automakers surged at the news that the central government set a percentage of new-energy vehicles for official purchases.

The key Shanghai Composite Index rose 0.38 percent, or 7.87 points, to 2,054.83. Turnover was 48.8 billion yuan (US$7.9 billion) by the noon break.

Electric cars should account for at least 30 percent of all official sedans to be purchased between 2014 and 2016, according to a circular issued yesterday by five ministries and commissions. The Percentage of electric cars will be increased every year after 2016.

The central government also promised subsidies for buying electric vehicles of less than 180,000 yuan and urged local authorities to speed up construction of charging facilities.

The circular came as Beijing's latest effort to popularize clean-energy vehicles and to fight air pollution.

Anhui Jianghuai Automobile surged by the daily limit of 10 percent to 12.34 yuan. Dongfeng Electronic Technology jumped 6 percent to 15.66 yuan. Beiqi Foton Motor climbed 5.9 percent to 5.42 yuan.

Distilleries also gained. Kweichow Moutai rose 3.7 percent to 147.11 yuan. Shanxi Xinghuacun Fen Wine Factory added 3.8 percent to 13.49 yuan.