NIO has accumulated about 50 percent gains in Hong Kong since last Wednesday.
The debut of NIO shares in Hong Kong came at a time when tech stocks were selling off badly, and they suffered the same plunge. Now, after a V-shaped reversal, these shares have finally recovered their losses.
At press time, NIO (NYSE: NIO, HKG: 9866) was up 8.4 percent to HK$162.6, the first time it has been back above HK$160 since its Hong Kong listing.
NIO shares began trading in Hong Kong on March 10, opening the day at HK$160 and were essentially flat by the close.
But after that, tech stocks suffered big plunges, as did the Chinese electric vehicle (EV) makers' stocks. NIO accumulated a 31.5 percent drop from March 11-15.
On Wednesday, March 16, NIO jumped 29.11 percent in Hong Kong as a high-level financial meeting in China expressed support for capital markets, and its shares continued to rise on Thursday and Friday. Since last Wednesday, NIO has accumulated about 50 percent gains in Hong Kong.
The stock's rally appears to be a correction of the previous excessive selling, as there has not been any significant change in NIO's fundamentals, either in the plunge or the recent rally.
The only thing worth noting is that many Chinese EV makers have raised prices as raw material prices have soared, but NIO has not done so.
NIO is not going to raise prices, at least for now, said Qin Lihong, co-founder and president of the company, as quoted by tech media IGreatBI today.
As of press time, NIO's local peer XPeng Motors (NYSE: XPEV, HKG: 9868) is up 4.78 percent to HK$107.5 in Hong Kong, while Li Auto (NASDAQ: LI, HKG: 2015) is up 0.57 percent to HK$105.1.
Hong Kong's Hang Seng Index rose 0.45 percent and the Hang Seng Tech Index gained 0.62 percent.