(Yicai Global) Nov. 10 -- Shares of the electric vehicle unit of China's cash-strapped real estate giant Evergrande Group rose after the automaker was approved to sell its first model in China and unveiled a plan to prepare for production by raising HKD500 million (USD64.2 million) in a private share sale.

After soaring by as much as 7.3 percent in Hong Kong today, China Evergrande New Energy Vehicle Group [HKG:0708] finished 0.9 percent higher at HKG3.60 (46 US cents). The stock jumped 3.8 percent yesterday.

The Ministry of Industry and Information Technology gave Evergrande NEV the green light to sell its first Hengchi model by including the brand in the Road Motor Vehicle Manufacturers and Product Announcement it released yesterday. Before the market opened today, the Guangzhou-based firm also said it plans to sell about 175 million shares at HKD2.86 each in a private placement to raise funds for research, development, and production.

Evergrande NEV expects the first Hengchi 5 to roll off the assembly line at the company’s Tianjin plant early next year, President Liu Yongzhuo told a meeting with partners on Oct. 11. The factory has been transformed into a first-class industrial 4.0 high-end smart plant, he added.

The Hengchi 5 is a sport utility vehicle priced below CNY200,000 (USD31,300) that aims to compete with the Audi Q3 and the BMW X1.

It is 4.7 meters long, 1.9 m wide , and 1.7 m high, according to ministry data. The engine, made by United Automotive Electronic Systems, has a maximum power of 150 kilowatts and a rated power of 60 kW. The car is equipped with an antilock brake system from Bosh Automotive Products Suzhou and a lithium iron phosphate battery from Contemporary Amperex Technology.

Property developer Evergrande wants to make electric vehicles its main business within 10 years, Chairman Xu Jianyin said on Oct. 25.

Editor: Futura Costaglione