Chinese carmakers surge on promise of continued stimulus

Shares in Asia closed higher Friday as confidence that the Chinese government will continue to prop up its economy with massive economic stimulus measures returned. The Shanghai Composite Index climbed 1.9 percent to close at 3,108, the Hang Seng rose 1.7 percent to end the day at 22,590, and the Nikkei Index added 0.2 percent, finishing the session at 10,283.

In China, news that the government will continue to support the automobile industry sent carmaker Shenyang Jinbei Automotive Co. Ltd. soaring to its 10 percent daily limit, along with Zhongtong Bus & Holding Co. Ltd., which also shot up10 percent. More modest gains were reaped by other carmakers: DongFeng Automobile Co. Ltd. (DNFGF) climbed 4.1 percent, Beijing-based Beiqi Foton Motor Co., climbed 2.8 percent and Dongan Heibao Co. Ltd. was up 0.6. The Chinese car industry seems like a promising bet for investors as it has a huge number of potential customers who are becoming more and more interested in improving their lifestyles. Even Warren Buffett has put money into carmakers there, backing car and battery producer BYD Co. (BYDDF).