Why Nio, Other EV Peers Are Soaring In Hong Kong Today

Shares of U.S.-listed Chinese electric automakers Nio Inc. NIO, Xpeng Inc XPEV, and Li Auto Inc LI traded significantly higher in Hong Kong on Wednesday morning.

Shares of these Tesla Inc TSLA rivals ended on a mixed note overnight in U.S. markets.

Global Markets Recap: After four straight sessions of losses, the benchmark Hang Seng Index was up 0.90% on mostly firmer tech stocks that added 2.6%.

Elsewhere, Australia's ASX 200 slipped 0.14%, while Shanghai's SSE Composite Index gained 1.49%, and Japan's Nikkei 225 was up 0.32%.

Macro Factors: According to an SCMP report, a top economist said the impact of China's latest COVID-19 outbreak could be more than 10 times on the economy than that of the initial wave in Wuhan in 2020 and restrictions have so far affected 160 million people in cities with a combined economic output of 18 trillion yuan ($2.68 trillion) this year.

Data released earlier by the National Bureau of Statistics of China showed that the country's Consumer Price Index soared 2.1% year-on-year in April, above market expectations. Food prices in the country also rose by 1.9% from a year earlier.

Company In News: Nio plans to build a manufacturing plant at NeoPark for its anticipated sub-brand. The company plans to begin production of the sub-brand electric vehicle models in 2024.

Li Auto reported first-quarter FY22 revenue growth of 167.5% year-on-year to $1.51 billion, beating the consensus of $1.44 billion. The gross profit increased 250.9% year-on-year, with the margin expanding 530 basis points to 22.6%.

Photo courtesy: Nio