BAIC shares up on Daimler joint EV investment
$735m pool for car production, battery plant setup
NORIKO OKEMOTO, NQN staff writer
HONG KONG -- Shares of BAIC Motor traded high on Thursday, at one point surging to 8.01 Hong Kong dollars, up 5.12% from Wednesday.
After the close of trading the previous day, the Beijing-based automaker announced additional investment in electric vehicles with its German partner Daimler.
BAIC, Daimler and Daimler Greater China have reached a basic agreement to jointly put another 5 billion yuan ($735 million) into Beijing Benz Automotive, a joint partnership, to introduce Daimler electric cars and set up production facilities for batteries for new energy cars for the Chinese market, the statement said.
According to Mark To, head of research at Wing Fung financial group, BAIC shares had been slow to pick up, compared with those of its SUV-focused competitors. But news of the new investment motivated investors to buy.
The framework agreement was concluded on the sidelines of bilateral talks between Chinese President Xi Jinping and German Chancellor Angela Merkel on Wednesday.