Electric vehicle (EV) stocks trading in Hong Kong soared with the overall market after a meeting of China's top decision-making body sent the strongest signal of support for the economy so far this year.
At press time, NIO (NYSE: NIO, HKG: 9866) was up 6.96 percent in Hong Kong, XPeng Motors (NYSE: XPEV, HKG: 9868) was up 5.61 percent and Li Auto (NASDAQ: LI, HKG: 2015) was up 7.08 percent.
Hong Kong's Hang Seng Index rose 3.34 percent, while the Hang Seng Tech Index rose 8.45 percent. Alibaba rose 13 percent, while Baidu gained 8.28 percent.
The Politburo of the Chinese Communist Party held a meeting on April 29 to analyze and study the current economic situation and economic work, according to the state-owned Xinhua news agency.
The meeting stressed that China should control the Covid epidemic, but also stabilize the economy and achieve safe development.
China should coordinate the prevention and control of the epidemic and economic and social development according to the new characteristics of the virus' mutation and spread, to maximize the protection of people's lives and health, and minimize the impact of the epidemic on economic and social development.
The meeting called for China to increase macro policy regulation, solidly stabilize the economy, strive to achieve the expected targets for economic and social development for the year, and keep the economy running in a reasonable range.
China should accelerate the implementation of the policies that have been determined, implement policies such as tax rebates, tax cuts and fee reductions, and make good use of various monetary policy tools. The country also has to plan for incremental policy tools.
China should make every effort to expand domestic demand, allow effective investment to play a key role, and strengthen infrastructure development across the board.
The country should ensure the smooth flow of transportation and logistics, and the normal operation of key supply chains and key infrastructure.
The country also has to respond to market concerns in a timely manner, actively introduce long-term investors and maintain the smooth operation of the capital market, according to the meeting.
China should promote the healthy development of the platform economy, complete special rectification of the sector, implement regular supervision and introduce specific measures to support its standardized and healthy development.
China should insist on expanding a high level of opening to the outside world, actively respond to the demands of foreign companies, and stabilize foreign trade and foreign investment.
Here is the link to the Xinhua report, if you need.
In addition to Hong Kong stocks, China's A-share market also moved sharply higher. As of press time, the Shanghai Composite Index was up 2 percent and the ChiNext index was up 3 percent.
The RMB, which has depreciated significantly recently, also rebounded in the afternoon, with the offshore RMB returning to about 6.64 against the dollar and the onshore RMB back to 6.61 against the dollar.