By Yifan Wang
Shares of Chinese electric car makers jumped in Hong Kong on Wednesday, extending soaring overnight gains on Wall Street, driven in part by expectations of recovering sales in the world’s largest automobile market.
The Hong Kong-listed shares of Li Auto Inc. soared 8.7% as of the midday trading break. Xpeng Inc. jumped 7.6% and Nio Inc. was up 5.9%.
The rally came despite latest industry data showing a sequential drop in China’s January passenger vehicle sales. The slowdown had been widely anticipated, as January is typically a low season for auto sales due to China’s weeklong Lunar New Year holiday, when car-purchase activities tend to slow. The latest expiry of a new-energy car purchase subsidy has likely further weighed on sales.
But the past month’s weakness hasn’t derailed sales recovery hopes. “As residents’ work and leisure activities normalize, the auto market’s rebound momentum looks intact, with car makers’ stepped-up promotional efforts and new model releases,” analysts at China Galaxy Securities said in a note.
They also pointed to recent policy signals from local governments aimed at boosting the automobile sector, a strategic industry that is likely to receive solid policy support this year, as officials seek to shore up the economy after China’s substantial slowdown in 2022.
Write to Yifan Wang at email@example.com
Read More: China EV Makers Jump in Hong Kong, Extending Wall Street Rally