Shares of Evergrande’s electric car unit pop 67% after raising billions to compete with Tesla in China

Evergrande Neighborhood Chairman Xu Jiayin attends Evergrande Unique Power Auto Worldwide Strategic Companions Summit on November 12, 2019 in Guangzhou, Guangdong Province of China.

VCG | Visual China Neighborhood | Getty Photos

GUANGZHOU, China — Shares of the electrical vehicle unit of Chinese language property big Evergrande surged as powerful as 67% on Monday after the company raised valuable funding via a brand fresh part sale.

China Evergrande Unique Power Automobile Neighborhood surged to an all-time-high of 50 Hong Kong bucks earlier than paring a pair of of these positive aspects. Shares of the company closed at 45.35 Hong Kong bucks.

The inventory rocketed after the Chinese language electrical vehicle company issued 952.38 million shares to six traders at a designate of $27.30 Hong Kong bucks and raised safe proceeds of 26 billion Hong Kong bucks ($3.35 billion).

The funding is any other signal that China’s electrical vehicle market is heating up, and Evergrande would possibly well well per chance pose a arena to Tesla besides to home competitors much like Nio and Xpeng Motors.

Final twelve months, Evergrande showed off six fresh electrical vehicles below a mark called Hengchi, with the hope of beginning production this twelve months. The corporate has no longer sold a single vehicle yet.

In September, the company raised around 4 billion Hong Kong bucks via the sale of shares to traders in conjunction with Chinese language internet big Tencent and lope-hailing provider Didi.

China Evergrande Unique Power Automobile Neighborhood is moreover getting prepared for a itemizing on Shanghai’s Nasdaq-model Science and Technology Innovation Board, or the Extensive name Market.

China’s electrical vehicle companies were aggressively elevating capital to ramp up production and take a lead in the competitive market.

Xpeng Motors raised $1.5 billion in an initial public providing in the U.S. closing twelve months and this month secured a credit line of 12.8 billion yuan ($1.98 billion).

This month, BYD — the Chinese language electrical carmaker backed by American billionaire Warren Buffett — stated it raised 29.9 billion Hong Kong bucks via the issuance of fresh shares.

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