This is the third consecutive day of gains for in Hong Kong, with cumulative advances of about 17 percent since last Friday.

Electric vehicle (EV) stocks trading in Hong Kong were up in early trading today, as the overall market continues to gain ground.

At press time, Nio (NYSE: NIO, HKG: 9866) was up 7.65 percent, the biggest gainer among major EV stocks.

It was Nio's third straight day of gains in Hong Kong, accumulating about 17 percent since Friday, but still near its low level since its listing in the Asian financial hub.

Motors (NYSE: XPEV, HKG: 9868) was up 4.63 percent, (NASDAQ: LI, HKG: 2015) was up 4.28 percent and was up 4.97 percent at press time.

Hong Kong's Hang Seng Index was up 1.87 percent, while the Hang Seng Tech Index was up 3.7 percent. Alibaba was up 4.96 percent, while Meituan rose 3.43 percent.

At the close of the US stock market overnight, Nio was up 1.68 percent, while Xpeng was down 0.79 percent and Li Auto was up 0.92 percent.

The recovery in investor sentiment is likely due to the continued decline in new Covid cases in China.

China added 162 confirmed cases of Covid and 887 asymptomatic infections on Monday, including 77 new confirmed cases and 746 asymptomatic infections in Shanghai, according to health authorities.

So far, all 16 districts in Shanghai have seen zero Covid cases on the social side, local officials said today at a press briefing.

Meanwhile, a growing number of cities are starting to ease restrictions on residents buying property, with Hangzhou, home to Alibaba's headquarters, as the latest.

In company-specific news, Bank of America (BofA) raised its rating on Nio as well as its price target on Monday, saying the negatives have been priced in.

Analyst Ming Hsun Lee raised his rating on Nio to Buy from Neutral and raised his price target on Nio to $26 from the previous $25, expecting higher sales levels to lead to better margins in the second half of 2022.

In addition, Nio is expected to list and start trading on the Main Board of the Singapore Exchange Securities Trading Limited this Friday.

Xpeng said yesterday that it will offer two new color options for the G3i SUV on May 20, as well as a customization option package. The move is expected to increase the model's appeal among the younger demographic.

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