Geely Automotive Holdings (GELYF)

[jimbonano]

Good volume - up a couple cents........

China Auto Shares Up On Report Purchase Limits Likely To Be Eased

BEIJING (Dow Jones)--Shares of China's automakers listed on the Shanghai and Hong Kong stock exchanges rose Friday partly due to a report that China may relax restrictions on auto purchases.

National Business Daily said Friday that China's National Development and Reform Commission had asked the State Council, or Cabinet, to adjust or scrap restrictions now in force, citing unnamed officials with the China Association of Automobile Manufacturers.

Limits on auto sales introduced in some major Chinese cities this year are in conflict with measures launched in 2009 designed to boost China's auto sector for the following three years, the report noted.

Beijing's municipal government has imposed strict limits on new car sales to try to improve the flow on the capital's traffic-clogged streets, saying it would allow only 240,000 new passenger cars to be registered this year, just one-third of sales in 2010.

Auto sales in China rose more than 32.4% last year to a record 18.06 million units, but the sector has since lost steam due to the expiry of incentives and the introduction of purchase limits in some cities, CAAM said.

In May, total vehicle sales in China, the world's largest auto market, reached 1.38 million units, down 4% on year. This followed a slight on-year decline in April, CAAM data shows.
Guangzhou Automobile Group Co. (2238.HK) rose 8.4% to close at HK$9.14 in Hong Kong. Geely Automobile Holdings Ltd. (0175.HK) climbed 7.3%,Dongfeng Motor Group Co. (0489.HK) rose 5.4% and BYD Co. (1211.HK) advanced 5%.

Newspaper website: http://www.nbd.com.cn/