China to build chargers to power 5m electric cars by 2020

A charging station for electric vehicles along the Beijing-Shanghai Highway. [Photo/Official Weibo account for CCTV News]

BEIJING -?China announced plans on Friday to build a nationwide charging-station network that will fulfil the power demands of 5 million electric vehicles by 2020.

The network will cover residential areas, business districts, public space and inter-city highways, according to a guideline released by the State Council, China's cabinet.

New residential complexes should build charging points or assign space for them, while public parking lots should have no less than 10 percent of parking spaces with charging facilities. There should be at least one public charging station for every 2,000 NEVs, the guideline said.

To finance the project, the government will encourage private investment, allow charger manufacturers to issue corporate bonds, and seek investment from pension funds.

Following the announcement, shares in charging companies were favored by investors during Friday's morning session. Shenzhen Auto Electric Power Plant Co, rose 0.95 percent to 33.87 yuan ($5.33).

China has rolled out subsidies and tax cuts to promote NEVs, cut emissions and save energy. The sector has seen explosive growth in the past two years.

In the first eight months of 2015, NEV sales surged 270 percent to 108,654, according to the China Association of Automobile Manufacturers.