Electric vehicle stocks of automakers trading in Hong Kong are reportedly soaring today, as per CnEVPost. Remarkably, this news followed a significant “rally” last week.
Chinese automakers whose HK stocks increased
NIO has risen 12.01% to HK$104.9 at the time of publication, setting a new record since October 12. As per the report, NIO has gained 31% since last Monday.
XPeng has increased 20.38% to HK$46.95, reaching a new high since October 5. Since last Monday, it has climbed by around 70%.
Li Auto increased 9.49% to HK$88.80, marking a new peak since October 6. It also gained roughly 33% from last Monday.
Leapmotor increased by 15.58%, whereas BYD increased by 4.08%.
| Company | Stocks in HK | Recorded increase today | Recorded increase since last Monday |
| NIO | HK$104.9 | 12.01% | 31% |
| XPeng | HK$46.95 | 20.38% | 70% |
| Li Auto | HK$88.80 | 15.58% | 33% |
On the other hand, the Hang Seng Index in Hong Kong increased by 3.15%, while the Hang Seng Tech Index climbed by 5.93%.
The Chinese EV trio’s significant stock increases have extended their historic run that began last Wednesday in the United States. During that time, NIO increased by 21.71%, XPeng by 47.28%, and Li Auto by 18.73%.
“High level, we think a large part of the rally was caused by a short squeeze as investors were caught being too negative on the group given Covid and competition concerns.”
Edison Yu’s team at Deutsche Bank
Impact of COVID-19 on HK stocks
Local COVID-19 pronouncements in Guangzhou, Chongqing, and Zhengzhou confirm that the policy is indeed changing to a more “hands-off approach,” Yu’s team noted.
Furthermore, numerous cities have loosened their COVID regulations recently, including Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Chongqing, and Tianjin. Passengers no longer need to show documentation of a negative COVID test to use public transit.
Furthermore, the National Health Commission (NHC) of China announced 20 measures on November 11 to significantly improve current policies, which was the most overt indication of China‘s Covid policy loosening.
Electric vehicle sales of the Chinese EV trio in November
It is worth noting that in November, NIO, and Li Auto both enjoyed record-breaking EV sales. NIO delivered a record 14,178, while Li Auto delivered 15,034 electric vehicles.
On the other hand, XPeng suffered a YoY decline of 62.8% to 5,811 vehicles.
In its third-quarter earnings announcement last week, XPeng oversaw fourth-quarter deliveries of between 20,000 and 21,000 vehicles. Based on the released figures, the firm anticipates delivering between 9,088 and 10,088 vehicles in December.
Despite the detrimental impact COVID-19 has had on the entire world, it is encouraging to see that many automakers are experiencing stock rises.
