Chinese electric vehicle stocks rip big gains again on stimulus exuberance

Chinese electric vehicle stocks ripped large gains in early trading on Monday, amid growing enthusiasm in China over Beijing’s latest stimulus measures. Following on the announcement last week of broad stimulus measures, three of China’s largest cities relaxed rules for homebuyers, and the Chinese central bank took action to lower mortgage rates.

The Shanghai Composite Index registered its ninth straight day of gains, with an 8.1% rise, just as the market starts its week-long China National Day holiday. The blue-chip CSI 300 Index rallied 8.5% and the Hong Kong Hang Seng Index gained 2.4%.

NIO (NYSE:NIO) rallied 13.0% in premarket trading to follow on Friday’s 12.8% rise. XPeng (NYSE:XPEV) shot up 8.3% to follow on Friday’s rise of 9.0%. Li Auto (NASDAQ:LI) broke 7.3% higher and ZEEKR Intelligent Technology Holding Limited (ZK) was up 11.2% as it looked to make it a two-day rally of more than 25%. Niu Technologies (NIU) jumped 9.1% and Lotus Technology (LOT) rallied 4.9%. Meanwhile, BYD Company (OTCPK:BYDDF) gained 2.9% in Hong Kong, while China Automotive Systems (CAAS) rose 6.7% and Kandi Technologies (KNDI) poked out a gain of 3.3% in the premarket U.S. session.

Tesla (TSLA) was missing out on the China-fueled rally in early trading, with a dip of 0.5%.

The automobile sector has a full slate of deliveries and sales reports this week, including from the key Chinese electric vehicle players on October 1 and Tesla (TSLA) on October 2.