BYD Company's stock surged 5.01% during Wednesday's trading session, following news that the automaker, along with at least seven other Chinese car manufacturers, has committed to paying suppliers within 60 days. This pledge aligns with a new regulation aimed at improving financial practices in the industry.

The regulation, which came into effect on June 1, mandates that large companies settle payments with suppliers within 60 days after receiving goods, engineering services, or other services. BYD, as one of China's leading automakers, joined industry peers such as Chery and Geely in publicly announcing their compliance with this new rule.

Investors appear to view this development positively, as it demonstrates BYD's commitment to maintaining strong relationships with its supply chain and adhering to regulatory requirements. This move could potentially strengthen BYD's position in the competitive electric vehicle market by ensuring stable supply chains and fostering trust among its business partners. The stock's significant rise suggests that the market sees this commitment as a sign of BYD's financial health and responsible business practices.