Chinese EV stocks gain; China reportedly mulling policies to support manufacturing growth

Jun. 21, 2022 12:30 PM ETNIO Inc. (NIO)LI, XPEVBy: Jessica Kuruthukulangara, SA News Editor6 Comments

Super charging pile for electric vehicles

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Shares of U.S.-listed Chinese electric vehicle (EV) makers rose on Tuesday amid broader gains in the sector, supported by China's industrial regulator reportedly mulling policies to stabilize manufacturing growth.

The Ministry of Industry and Information Technology (MIIT) held an expert symposium on Jun. 17, in which policy recommendations were discussed, CnEVPost reported citing an article posted by MIIT on WeChat.

Meanwhile, state-run Shanghai Securities News reported that MIIT is mulling "extraordinary policies" to address divergence in profits in upstream and downstream manufacturers caused by the COVID-19 pandemic and high raw material prices. The policies will aim to support investment momentum in the sector.

MIIT is reportedly exploring policies such as supply-side structural reforms, boosting demand and increasing investment in technological transformation.

The Chinese govt. should look at boosting consumer spending on EVs as well as environmental-friendly construction materials and home appliances, Bolan Finance chief economist Li Hongtu told Shanghai Securities News.

U.S.-listed shares of NIO and XPeng (XPEV) climbed to their highest level in 11 weeks, while Li Auto (LI) rose to a near 7-month high.

LI stock's gains were also supported by the EV maker unveiling its new Li L9 SUV model.

Now read: Tesla vehicles banned in Beidaihe on national security concerns

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