Market Recap

China is studying the extension of its policy on the purchase tax exemption for NEVs, a State Council meeting said yesterday.

Li Auto launched its new SUV, the L9, on Tuesday, and Citi raised its price target on the company.

At press time, Nio was up 11.29 percent in Hong Kong, hitting a new high since April 6 and putting its market capitalization back at HK$300 billion.

Deutsche Bank analyst Edison Yu's team believes Nio's deliveries are expected to move higher, shifting the narrative from supply constraints to a strong product super cycle.

As of press time, Nio was up 2.48 percent to a new high so far this month. Li Auto was up 10.62 percent to a new high since early April.

China's central bank today cut its benchmark LPR rate for 5-year and above by 15 basis points to 4.45 percent.

At press time, Nio was down 5 percent in Hong Kong, ending a four-day winning streak. Xpeng was down 5.24 percent and Li Auto was down 2.39 percent.

Nio has risen for a fourth straight day in Hong Kong, bringing its cumulative gain since May 13 to about 30 percent.

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

Xpeng has accumulated gains of more than 14 percent in the past seven trading days, while Li Auto is up about 13 percent and BYD is up 10 percent in the same period.