Shares of LI AUTO, the Chinese electric vehicle maker, soared 9.01% on Wednesday, fueled by the growing popularity of its extended-range hybrid and lithium-iron-phosphate (LFP) battery technology, as well as broader market optimism driven by China's economic stimulus measures and a proposed stock stabilization fund.

According to industry analysts, LI AUTO's hybrid vehicles, which combine a traditional internal combustion engine with an electric battery, have been outpacing pure battery electric vehicles (BEVs) in recent months, particularly in China. These extended-range hybrids, known as EREVs, now account for nearly a third of all plug-in hybrid sales in the country. Automakers are embracing hybrids as a relatively low-cost transition technology between gasoline and pure electric vehicles, reducing the demand for metals like lithium, nickel, and cobalt.

Additionally, Hong Kong stocks rose for a second day on Wednesday, with the Hang Seng Index gaining 1.9%, buoyed by optimism about corporate earnings amid a slew of stimulus measures from the Chinese government. Further boosting investor sentiment was a proposal from a government-backed think tank to establish a 2 trillion yuan ($280.5 billion) stock-stabilization fund, which could help steady the market through buying and selling blue-chips and exchange-traded funds (ETFs).

The combination of LI AUTO's innovative hybrid technology and the broader market optimism surrounding China's economic policies and stock market support measures appears to have driven the automaker's share price surge on Wednesday.