NIO - Chinese EV Stocks News: Why Are XPEV LI NIO Stocks Climbing Today?
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A number of Chinese electric vehicle (EV) companies are in focus today as some of the biggest names in the industry enjoy steady uptrends in stock price. Promising news out of Chinese regulatory officials seems to be behind today’s jump. So, what do you need to know about Chinese EV stocks today?
Well, it seems stocks are rising from signals that China may ease off its tech-sector crackdown. Indeed, over the past year and a half, the country has repeatedly scrutinized a number of tech companies for issues ranging from data privacy violations to antitrust concerns. A number of major Chinese tech companies have seen their share prices dwindle as a result.
However, it appears there may be light at the end of the tunnel. Recently, the Chinese state media reported the country’s leadership has a renewed focus on economic growth. This includes promoting the “healthy development” of the internet economy. The news is likely a response to the reopening efforts in the country following a rampant Covid-19 wave the past few months. The report comes as a refreshing change of pace to the country’s previously staunch attitude toward new-age tech companies.
Several Chinese EV companies are seeing strong gains today on the development.
Chinese EV Stocks Soar on Easing Regulation
XPeng (NYSE:XPEV), Li Auto (NASDAQ:LI) and NIO (NYSE:NIO) are each up this morning between 6.5% and 7.5%. The companies are likely rising in relation to the promising regulatory news out of the Chinese state media and improving Covid-19 conditions.
The country’s two largest cities, Beijing and Shanghai, are currently in a state of lockdown stemming from the wave of Covid running rampant in the country. Reasonably so, as Shanghai is considered the epicenter of the recent outbreak, reporting nearly 15,000 new cases a day.
While conditions are improving in the country, currently more than 180 million people are in lockdown as the omicron variant proves more difficult to contain than prior strains.
Chinese tech stocks continue to hover in a virtual gray area as the virus runs its course in the country. Today, however, investors are likely pleased with gains nearly across the board.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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