Shares of Tesla Inc TSLA rivals and US-listed Chinese electric car makers Nio Inc NIO, Xpeng Inc XPEV and Li Auto Inc LI traded significantly lower in Hong Kong on Monday amid weak global signals.Here’s How Nio, Xpeng and Li Auto Do in Hong Kong Stock Movement (+/-) Nio -4.89% Xpeng -4.07% Li Auto -5.88%
Macro Factors: Shares fell as much as 6% in morning trading, with the overall Hang Seng index plummeting nearly 3%. While its Asian counterparts showed a similar trend as Shanghai’s composite index fell 2.51% and Japan’s Nikkei 225 fell nearly 2%.
SEE ALSO: Why Alibaba and other tech peers are sinking in Hong Kong today
This came amid rising COVID-19 cases in the Chinese capital, Beijing. The world’s second-largest economy has already struggled to wipe out infections in Shanghai’s financial center, and now a slew of cases in the capital has forced the shutdown to extend to new locations.
Company in the news: According to CnEVPost, Chinese brokerage firm Guosen Securities said it is optimistic about Nio’s potential in the high-end market. The brokerage gave the EV maker an “overweight” rating, but did not offer a price target.
Meanwhile, as part of its “Power Up Plan”, Nio also launched a new route for EV drivers in the eastern Chinese province of Fujian. The company aims to promote energy-replenishing experiences in popular tourist destinations.
The Shanghai Stock Exchange said in an announcement that Hong Kong’s Li Auto shares have been added to the Shanghai-Hong Kong Stock Connect list. This mechanism was launched in 2014 to allow investors in the two regions to buy each other’s shares.
Photo Courtesy of: Nio
This post Why EV Shares Nio, Xpeng and Li Are Falling in Hong Kong was original published at “https://www.benzinga.com/markets/asia/22/04/26779243/ev-stocks-nio-xpeng-struggle-in-hong-kong-heres-what-driving-them-down-today”