A number of Chinese electric vehicle (EV) companies are in the spotlight today as some of the biggest names in the industry benefit from a steady upward trend in stock prices. Promising news from Chinese regulators appears to be behind today’s jump. So what do you need to know about Chinese electric vehicle stocks today?
Well, it looks like stocks are rising on signals that China may be easing its crackdown on the tech sector. Indeed, over the past year and a half, the country has repeatedly scrutinized a number of tech companies for issues ranging from data privacy breaches to antitrust concerns. A number of major Chinese tech companies have seen their stock prices drop as a result.
However, it looks like there may be light at the end of the tunnel. Recently, Chinese state media reported that the country’s leaders are once again focusing on economic growth. This includes promoting the “healthy development” of the Internet economy. The news is likely a response to efforts to reopen the country following a rampant wave of Covid-19 in recent months. The report comes as a refreshing change of pace from the country’s previously hardline stance toward new-era tech companies.
Several Chinese electric vehicle companies are now making solid development gains.
Chinese EV stocks soar on regulatory easing
XPeng (NYSE:XPEV), Li-Auto (NASDAQ:LI) and NIO (NYSE:NIO) are each up this morning between 6.5% and 7.5%. Companies are likely up on promising regulatory news from Chinese state media and improving Covid-19 conditions.
The two largest cities in the country, Beijing and Shanghai, are currently in a state of confinement due to the wave of Covid in the country. Reasonably so, as Shanghai is considered the epicenter of the recent outbreak, reporting nearly 15,000 new cases daily.
As conditions improve in the country, more than 180 million people are currently in lockdown as the omicron variant is proving harder to contain than previous strains.
Chinese tech stocks continue to hover in a virtual gray zone as the virus runs its course in the country. Today, however, investors are likely pleased with gains almost across the board.
As of the date of publication, Shrey Dua does not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.