Shares of Chinese electric vehicle (EV) manufacturers, including Great Wall Motor (GWMOTOR), surged in Hong Kong trading on Monday, fueled by optimism surrounding a potential rebound in the country's automobile market.
The rally was led by XPeng and Geely Auto, which saw their stocks climb nearly 7%. GWMOTOR and BYD also experienced significant gains, rising more than 5%. Other notable movers included Brilliance China (4.8%), Li Auto (4.1%), and NIO (0.8%).
The surge in Chinese EV stocks was driven by growing expectations of a recovery in the domestic auto market, which has been grappling with challenges stemming from COVID-19 lockdowns and broader economic headwinds. The strong performance of these companies suggests that investors are anticipating a resurgence in consumer demand for electric vehicles in the coming months, supported by robust October sales figures from major players like BYD, which reported a 66.5% year-over-year increase in sales.
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