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What: Shares of Chinese automaker Kandi Technologies (NASDAQ:KNDI) jumped 23% today after China introduced incentives for electric vehicles.
So what: The Chinese government introduced a program that will pay $9,800 toward the purchase of an all-electric passenger vehicle, and $81,700 toward the purchase of electric busses. The subsidy will be paid to manufacturers in advance each quarter, and then paid directly from the manufacturer to the consumer.
Now what: The program will last until 2015 and is intended to get at least 10,000 "new energy vehicles" in each Large Pilot City or Region. There are also requirements stating that regions must buy non-local brands, easing concerns that turf wars will take place within China. Overall, this should be a positive for Kandi, although it will take time to see what the financial impact will be.
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Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.