(Yicai Global) April 28 -- Shares of Chinese logistics companies rose after the government announced that it will exempt express delivery firms from paying value-added tax this year.

Shanghai-based supply chain logistics firm Ace Investment & Development [SHA: 603329] jumped by the daily limit of 10 percent to CNY14.72 (USD2.20).

Suzhou-based Hichain Logistics' stock price [SHE: 300873] rose 3.6 percent to close at CNY23.82.

Delivery giant S.F. Holding [SHE: 002352] climbed 2.6 percent to CNY47.50.

The State Council proposed a series of measures at a meeting yesterday to bolster the logistics sector, including exempting eligible express delivery service providers from VAT from May 1 to Dec. 31. It will also launch a CNY100 billion (USD15.2 billion) refinancing as soon as possible to support fundraising in transportation and warehousing.

The logistics sector has become increasingly vital to the country amid new Covid-19 outbreaks that have left millions of people in cities, including Shanghai, stuck at home for weeks amid lockdowns while relying on takeout and online grocery platforms.

On April 26, the transport ministry said at a press conference that transport bottlenecks in key areas including Shanghai have gradually been solved with a constantly enhanced guarantee of key supplies.

The same day the State Council said that domestic freight transport has been recovering. The volume of highway trucks was 7.4 million, up 2.8 percent from the previous day. Express delivery firms collected 300 million parcels, rising 1.4 percent from April 25. Some 294 million parcels were delivered, up 2.8 percent.

Editor: Emmi Laine, Xiao Yi