A Study on Favorable Policies in the New Energy Vehicle Industry and Their Impact on Stock Price Levels

DOI: https://doi.org/10.62517/jse.202611502

Author(s)

Qixuan Guo

Affiliation(s)

Finance, School of Business, East China University of Political Science and Law, Shanghai, China

Abstract

At present, China's new energy industry ranks among the nation's strategic emerging sectors, and its progress is heavily subsidized by government policies. The growth of the new energy vehicle (NEV) sector is closely intertwined with policy backing. Therefore, investigating the effect of pro-NEV policies on corporate stock prices holds significant implications for policy formulation and for enhancing the sector’s developmental capacity. This study collects panel data from companies in the automotive and related sectors over the period from 2020 to 2025. Applying a difference-in-differences (DID) approach, this study examines how pro-NEV policies affect share prices. The results indicate that such policies exert a statistically significant positive impact on the stock prices of listed firms. Based on these findings, we propose practical recommendations for both enterprises and investors in the new energy industry.

Keywords

New Energy Vehicles; New Energy Policies; Stock Prices; Difference-in-Differences (DID)

References

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