Li Auto Inc. LI shares traded higher on above-average volume Wednesday after China's central bank on Tuesday cut its seven-day reverse repurchase rate.
What To Know: In an effort to improve market confidence due to the country's slow post-pandemic recovery, China's central bank lowered its short-term lending rate from 2% to 1.9%, according to Reuters, representing the first cut in 10 months.
"The central bank's rate cut decision was not a complete surprise to the market. Commercial banks have already lowered deposit rates, and PBOC governor Yi Gang also mentioned strengthening counter-cyclical adjustment recently," Ken Cheung, chief Asian FX strategist at Mizuho Bank, reportedly said.
China is scheduled to release credit lending data, retail sales and industrial production data for May this week.
Li Auto's average session volume over a 100-day period is just below 7 million. Wednesday's volume more than doubled the average, reaching 15.98 million.
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LI Price Action: Shares of LI closed Wednesday up 7.34% at $33.80, according to Benzinga Pro.
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