GUANGZHOU, China — Shares of the electrical automobile unit of Chinese language property large Evergrande surged as a lot as 67% on Monday after the corporate raised important funding via a brand new share sale.

China Evergrande New Energy Vehicle Group surged to an all-time-high of fifty Hong Kong {dollars} earlier than paring a few of these positive factors. Shares of the corporate closed at 45.35 Hong Kong {dollars}.

The inventory rocketed after the Chinese language electrical automobile firm issued 952.38 million shares to 6 buyers at a worth of $27.30 Hong Kong {dollars} and raised web proceeds of 26 billion Hong Kong {dollars} ($3.35 billion).

The funding is one other signal that China’s electrical automobile market is heating up, and Evergrande might pose a problem to Tesla in addition to home rivals akin to Nio and Xpeng Motors.

Final yr, Evergrande confirmed off six new electrical automobiles below a model known as Hengchi, with the hope of beginning manufacturing this yr. The corporate has not bought a single automobile but.

In September, the corporate raised round 4 billion Hong Kong {dollars} via the sale of shares to buyers together with Chinese language web large Tencent and ride-hailing service Didi.

China Evergrande New Power Automobile Group can be making ready for a list on Shanghai’s Nasdaq-style Science and Know-how Innovation Board, or the Star Market.

China’s electrical automobile corporations have been aggressively elevating capital to ramp up manufacturing and take a lead within the aggressive market.

Xpeng Motors raised $1.5 billion in an initial public offering in the U.S. final yr and this month secured a credit line of 12.8 billion yuan ($1.98 billion).

This month, BYD — the Chinese language electrical carmaker backed by American billionaire Warren Buffett — mentioned it raised 29.9 billion Hong Kong {dollars} via the issuance of recent shares.