BYD has been given approval to sell its cars in the cities of Beijing and Shanghai's programmes designed to encourage take-up of green cars.

BYD shares surged on the news.

On Wednesday, Beijing's Municipal Commission of Economy and Information Technology released a list of companies and products under a government programme to encourage the use of new energy cars.

BYD's pure electric E6 appeared on the list, together with a model manufactured by BAIC Motor.

Shanghai's municipal government on Tuesday included Qin, a plug-in electric car model made by BYD, on its list for promoting new energy car use, according to a statement.