Why Nio, Xpeng Are Pushing EV Stocks Higher In Hong Kong Today

Shares of Tesla Inc TSLA rivals and U.S.-listed Chinese electric automakers were a mixed bag in the Hong Kong markets on Thursday. While Nio Inc NIO and Xpeng Inc XPEV traded higher, Li Auto Inc LI sank in an otherwise green market. 

The Macro Factors: Amid the positive cues from the global peers, the benchmark index Hang Seng opened in green and was up 1.29% at the time of writing. 

This came after U.S. stocks rebounded on Wednesday following a sharp sell-off Tuesday. The Shanghai Composite Index gained over 1%, and Japan's Nikkei 225 was up 0.61%. 

Investors' risk appetite received a boost amid declining COVID-19 cases in mainland China, with the financial hub Shanghai's new infections falling to a three-week low. Shanghai is the hub for many EV makers, including Tesla. 

Companies In The News: Cathie Wood-Backed Xpeng has agreed with the Agricultural Bank of China, a state-owned bank, for a comprehensive credit line of up to 7.5 billion yuan ($1.14 billion).

Deutsche Bank analysts in an investor note said Xpeng’s upcoming sales figures at the end of the week would be a catalyst for the company’s stock rebound, according to CnEVPost.