BAIC MOTOR (01958) soared more than 14% in the afternoon session, with shares climbing 14.29% to HK$0.80 at the time of writing, generating turnover of HK$8.13 million.

The rally comes as nine government departments, including the Ministry of Industry and Information Technology, issued the 15th Five-Year Plan for the smart connected new energy vehicle industry, marking the first time capacity early warning and regulation has been included in an industry five-year plan. Additionally, Shao Ji, deputy director of the Industrial Development Department at the National Development and Reform Commission, voiced strong support for deepening reforms among major enterprise groups in the sector.

Going forward, the government will promote mergers and acquisitions among automakers through market-based and law-based approaches, helping leading companies consolidate core resources such as R&D and production, while curbing homogenized low-price competition in product design and technology development across the industry.

In the first half of this year, BAIC MOTOR reported revenue of RMB 57.726 billion, down 29.94% year-on-year. The company recorded a loss attributable to parent company shareholders of RMB 1.594 billion, swinging from profit to loss compared to the same period last year. The company attributed the net loss to intense competition in the domestic automotive industry during the period, with sales falling short of expectations, compounded by rising raw material costs and increased market investment.