Shares of Li Auto Inc. (NASDAQ: LI), a prominent Chinese electric vehicle maker, took a nosedive on Monday, plummeting 6.24% amid broader concerns over China's economic growth and uncertainty surrounding the government's promised stimulus measures.
The stock's tumble was part of a larger selloff in Chinese companies listed on U.S. exchanges, known as American Depositary Receipts (ADRs). This market reaction followed a disappointing announcement from China's finance ministry over the weekend, which stated that the government would increase borrowing without providing specific details on the timing or the amount, leaving investors frustrated and seeking more clarity on fiscal stimulus plans.
Adding to the concerns, China's trade data for September missed expectations, with exports rising only 2.4% year-over-year and imports growing a mere 0.3%. These lackluster figures fueled doubts about the country's ability to meet its 5% economic growth target for the year, exacerbating fears of a potential slowdown in consumer demand.
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