Evergrande’s electric car unit gets funding to compete with Tesla, Nio in China

Evergrande Group Chairman Xu Jiayin attends Evergrande New Energy Auto Global Strategic Partners Summit on November 12, 2019 in Guangzhou, Guangdong Province of China.

VCG | Visual China Group | Getty Images

GUANGZHOU, China — Shares of the electric automobile unit of Chinese property big Evergrande surged as a lot as 67% on Monday after the company raised vital funding by a brand new share sale.

China Evergrande New Energy Vehicle Group surged to an all-time-high of fifty Hong Kong {dollars} earlier than paring a few of these positive factors. Shares of the company closed at 45.35 Hong Kong {dollars}.

The stock rocketed after the Chinese electric car company issued 952.38 million shares to six buyers at a worth of $27.30 Hong Kong {dollars} and raised internet proceeds of 26 billion Hong Kong {dollars} ($3.35 billion).

The funding is one other signal that China’s electric car market is heating up, and Evergrande might pose a problem to Tesla in addition to home rivals corresponding to Nio and Xpeng Motors.

Last year, Evergrande confirmed off six new electric autos below a model known as Hengchi, with the hope of beginning manufacturing this year. The company has not bought a single car but.

In September, the company raised round 4 billion Hong Kong {dollars} by the sale of shares to buyers together with Chinese web big Tencent and ride-hailing service Didi.

China Evergrande New Energy Vehicle Group can also be making ready for an inventory on Shanghai’s Nasdaq-style Science and Technology Innovation Board, or the Star Market.

China’s electric car corporations have been aggressively elevating capital to ramp up manufacturing and take a lead in the aggressive market.

Xpeng Motors raised $1.5 billion in an preliminary public providing in the U.S. final year and this month secured a credit score line of 12.8 billion yuan ($1.98 billion).

This month, BYD — the Chinese electric carmaker backed by American billionaire Warren Buffett — mentioned it raised 29.9 billion Hong Kong {dollars} by the issuance of recent shares.

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