Azernews.Az

By Bloomberg

Chinese shares related to electric vehicles jumped amid speculation they will benefit from Apple Inc.’s entry into the industry.

BYD Co., a manufacturer of electric cars and batteries, surged 11 percent in Hong Kong today. NavInfo Co., a provider of auto navigation systems, jumped 10 percent in Shenzhen, its biggest advance since May 2010. Car-accessory maker Ningbo Joyson Electronics Corp. climbed 10 percent in Shanghai. The CSI 300 Index gained 0.9 percent, while the Hang Seng Index added 0.2 percent.

Apple is developing an electric vehicle, people familiar with the matter said. The design resembles a minivan, and Apple executives have flown to Austria to meet with contract manufacturers of high-end cars, the Wall Street Journal reported on Friday, citing people familiar with the matter.

“There’s speculation BYD may cooperate with Apple for certain kinds of car parts,” said William Fung, investment manager at Tanrich Securities Co. in Hong Kong. The market also sees Apple investing in companies like NavInfo to enhance their system, he said.

BYD, backed by Warren Buffett’s Berkshire Hathaway Inc., said it didn’t know what prompted a selloff that drove the stock to a record low in December, dismissing rumors including the arrest of its chairman and subsidy cuts for alternative-energy vehicles in China. The shares have since rebounded 30 percent after Apple added the company to its list of assemblers for iPhones and iPads, and as BYD announced it will sell its electronic components unit to Holitech Technology Co.

Apple, with market capitalization that’s exceeds $700 billion, needs to continue growing sales of iPhones while also expanding into new markets such as automobiles if it’s to reach a $1 trillion valuation, Gene Munster, an analyst with Piper Jaffray Cos., said Saturday in an interview. He added that he doesn’t think Apple would bring out a car in the next five years.