(Yicai Global) July 10 -- Chinese new energy vehicle makers surged today on the news that electric vehicle start-up Nio, which is fast running out of money, has secured CNY10.4 billion (USD1.5 billion) in loans from the local branches of six big state-owned banks.
The Hefei, Anhui-province based firm’s shares [NYSE:NIO] soared 13.12 percent yesterday to reach USD14.57. Its stock price has risen by 87 percent already this month.
The Anhui province branches of the China Construction Bank, the Industrial and Commercial Bank of China, the Bank of China and the Agricultural Bank of China together with the Industrial Bank and China Merchant’s Bank’s Hefei offices agreed to extend the loans today.
The good news saw a collective surge in the shares of mainland-listed NEV makers. Anhui Jianghuai Automobile Group [SHA:600418], also known as JAC Motors and also based in Hefei, hit the exchange-imposed daily limit of 10 percent to reach CNY11 (USD1.57). BYD [SHE:002594] had climbed 7 percent to CNY90 a share by early afternoon.
Editor: Kim Taylor