Stocks on the Chinese mainland rose, capping the benchmark index's biggest five-day gain in six weeks. That advance came as automakers and industrial companies rallied on speculation their shares are undervalued given the prospects for earnings growth.
A moderate rebound in Beijing's car market looms ahead, after Beijing's license plate lottery program issued the first batch in its quota to 17,600 individual buyers on Wednesday.
SAIC Motor Corp, China's largest carmaker, jumped to the highest level in a month in Shanghai trading on speculation the company's shares are undervalued as economic growth will sustain industry earnings.
The Beijing government's restrictions on new license plates were meant to contend with traffic congestion, but are simultaneously threatening the livelihoods of many local dealers of second-hand cars.
The capital's first car license plate lottery took place on Wednesday under new rules to tackle chronic traffic gridlock and air pollution.
Car rental companies in Beijing have enjoyed robust growth in business as many people resorted to hiring a car when their plans to buy one were dampened by the new vehicle registration rules.
Volvo Car Corporation inaugurated its China headquarters in Shanghai on Jan 25, 2011 to increase its presence in the Chinese market.
The capital city's auto insurance premium income will probably see a slump in growth this year due to curbs on auto purchases by the local government.
General Motors Co sold more vehicles in China than it did in the United States last year, marking the first time a foreign market has outpaced the automaker 's domestic sales in its 102-year history.
Tata Motors Ltd said sales of its Jaguar and Land Rover cars in China surged to records in 2010, Bloomberg reported Monday.
Guangdong's provincial capital will not restrict vehicle registrations in new measures to curb traffic congestion, a senior provincial official said on Sunday.
BAIC Group, the partner of Daimler AG and Hyundai Motor Co, recently bought a private automaker in Guangdong province to gain a foothold in the southern market and boost its own brand cars.
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