(Yicai Global) May 20 -- Chinese stocks connected with electric vehicle charging surged after the government unveiled plans to speed up the construction and installation of charging facilities in residential areas.
Inventronics [SHE: 300582] soared 20 percent today to CNY14.94 (USD2.32), CSG Science and Technology [SHE: 300222] jumped 12.6 percent to CNY11.15, Shenzhen Auto Electric Power Plant [SHE: 002227] gained 10 percent to CNY14.85, and Shenglan Technology [SHE: 300843] added 8 percent to CNY25.45. The broader Shenzhen Component Index edged up 0.4 percent.
New residential compounds must make sure that all car parking spaces have power lines and space for EV-charging piles, according to a document published today by the National Development and Reform Commission, China’s top planning agency, and the National Energy Administration.
Charging facility operators are also encouraged to take commissions from owners to provide paid services for the planning, construction, operation and maintenance of charging piles, the document said.
With EVs becoming ever more popular and new infrastructure being promoted, the charging pile sector is about to see explosive growth, according to a research report by Chuancai Securities.
After years of big changes in the industry, just a handful of firms have stood out, and most of them make charging piles, the report said, adding that the sector’s profitability will continue to improve as EV sales soar.
Editor: Peter Thomas