By Sherry Qin
Chinese battery stocks rose sharply after Beijing summoned battery makers again to stress the importance of curbing irrational competition and avoiding damaging price wars.
Four government agencies, including China's top market watchdog, called on 16 leading Chinese manufacturers of electric-vehicle and energy-storage batteries on Thursday.
The lithium-battery industry should recognize the "importance and urgency" of limiting excessive competition and maintaining a healthy and orderly market environment, the ministries said in a statement.
China has made cracking down on "involution," a buzzword for price wars and excessive competition across industries, a top policy priority. Thursday's meeting followed a similar one in January, signaling Beijing's increased scrutiny of the battery industry.
The ministries vowed to strengthen production capacity regulation, promote more orderly price competition and shorten supplier payment times, among other measures.
Investors cheered Beijing's move, sending shares of CATL, the world's largest electric-vehicle battery maker, up more than 8% in Hong Kong and nearly 7% higher in Shanghai on Friday. Gotion High-Tech rose 10% and Shenzhen Xinyuren Technology gained 13%.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
04-10-26 0313ET
