China EV Maker Inks Deal With State-Owned Bank Amid Beijing Crackdown


Electric-vehicle maker Kandi Technologies (KNDI) inked a credit-financing take care of one in all China’s greatest state-owned banks. Kandi inventory jumped.




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The Hangzhou department of the Agricultural Bank of China will present Kandi with a 500 million renminbi (about $76.5 million) line of credit score. That will help the primary section of a ride-sharing service that options battery swaps.

The partnership additionally consists of Zhejiang Ruiheng Technology Company, a ride-share unit Kandi established, in addition to China Battery Exchange Technology Company, which is Kandi’s battery-swap subsidiary.

One of China’s “Big Four” state-owned banks, Agricultural Bank of China will deal with the three entities as favored clients for monetary companies, fund administration and fundraising, the assertion added.

Kandi’s deal for credit score financing follows a flurry of capital raises to fund growth by Chinese EV shares Nio (NIO), Xpeng Motors (XPEV) and Li Auto (LI), as they attempt to fend off Tesla (TSLA) on their house turf.

The line of credit score from a high state-owned financial institution additionally comes as Beijing has signaled a stricter regulatory stance against China’s tech companies.


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Kandi Stock

Shares popped 12% to 7.71 in Tuesday’s stock market, nonetheless beneath the 50-day help degree. Kandi inventory undercut the 50-day line after short-seller Hindenburg Research on Nov. 30 accused the company of faking sales.

Among different Chinese EV shares, Nio misplaced 3.3% Tuesday, Li Auto added 0.3% and Xpeng gained 1.8%. Tesla edged up 0.3% after it signaled {that a} supply goal of half one million EVs in 2020 is inside attain. Tesla inventory, which is on the IBD Leaderboard, hit an all-time excessive of 695 in December as traders rushed in to purchase the inventory earlier than it entered the S&P 500.

Some analysts see an “EV arms race” within the Chinese EV (electrical automobile) market heading into 2021. In China, demand for electrical automobiles roared again over the previous six months, following a pandemic hit earlier.

Find Aparna Narayanan on Twitter at @IBD_Aparna.

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