China Evergrande New Energy Vehicle plunges after state media says concern on industry development

Nexteer Automotive

29/03/2021 08:40

** China Evergrande New Energy Vehicle Group Ltd  0708.HK 
plunged as much as 15.4% to HK$53.30, the lowest since Mar. 15
    ** Stock was last down 7.1%, on course for the worst session
since Feb. 23
    ** China's official media said on Sunday that the
overpromotion on some new energy vehicles and the high market
value of some companies which have yet to sell any vehicles have
become a great concern in the industry (https://bit.ly/3fjJzwR)
    ** Xinhua news agency pointed out that company such as China
Evergrande New Energy Vehicle is valued at over HK$500 bln
($64.3 bln) without selling any mass produced vehicles.
    ** Xinhua said regulators and relevant authorities are urged
to be vigilance on capital market's "bubble operation" on the
new energy vehicle industry and to strengthen supervision on
quality of the vehicles.
    ** Shares of rival Great Wall Motor also fell with its
Shanghai shares  601633.SS  plunging 5.8% and Hong Kong stock
 2333.HK  down 3.7%; newcomer Xiaomi  1810.HK  fell as much as
2%.
    ** Nexteer Automotive  1316.HK  plunged 6.1% to the lowest
since Jan. 21, and BYD Co  1211.HK  dropped as much as 4.5%
    ** The Hang Seng China enterprises index  .HSCE  slipped
0.3%, and the benchmark index  .HSI  was down 0.1%

($1 = 7.7728 Hong Kong dollars)

 (Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net,
editing by Louise Heavens)