China EV makers’ shares rise as Beijing plans additional assist for auto sector
Shares of major Chinese electric car makers jumped in Hong Kong, as investors welcomed Beijing’s latest plan to launch more auto consumption stimulus measures.
NIO Inc. NIO, +4.68% soared as much as 7.4% within an hour of trading, and shares were last up 6.7%. XPeng Inc. 9868, +0.40% gained 2.8% and Geely Automobile Holdings Ltd. 175, -0.69% added 2.5%. The US-listed shares of NIO NIO, +8.02% and XPeng advanced 8.0% and 5.5%, respectively, on Wall Street overnight.
The sector’s upturn came after Beijing on Thursday unveiled plans to further boost auto consumption to shore up the economy amid mounting slowdown pressures after a brutal pandemic resurgence and strict movement restrictions earlier this year. The new measures included potentially extending a tax break for new energy vehicle purchases, encouraging companies to offer more discounts, and stepping up the building of EV charging stations.
The auto industry has been a key beneficiary of Chinese authorities’ efforts to support consumption and economic activities. In late May, officials at a State Council meeting said they would cut purchase taxes on non-EV passenger cars for a certain period of time, waiving a total of about $9 billion in taxes.
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