Changan Auto gains most in a month after factory plan

Chongqing Changan Automobile Co., China’s fourth biggest automaker, rose the most in more than a month in Shenzhen trading after saying it will build a new plant in Beijing to produce passenger cars.

The stock climbed 3.7 percent to close at 11.22 yuan as of the 3 p.m. close of trading in Shenzhen, the most since Oct. 19. The benchmark Shanghai Composite Index fell 1.9 percent.

The Chinese automaker plans to invest 4.3 billion yuan ($647 million) to build a factory that will produce 200,000 vehicles a year, according to a stock exchange filing. Chairman Xu Liuping said last month the company plans to make 6 million cars in 2020, double its production target of 3 million in 2012.

Changan will make cars, sport utility vehicles as well as automobiles powered by alternative energy at its new factory in Beijing, according to the statement. The plant will start production in June 2012, the company said.