The shares of XPeng Inc. (XPEV), a leading Chinese electric vehicle maker, soared by 11.92% intraday on Monday. The stock was caught up in a broad rally in Chinese stocks and ETFs listed overseas, following China's landmark decision to embrace a "moderately loose" monetary policy stance for the first time since 2011.
In a crucial meeting of the Politburo led by President Xi Jinping, China's top leaders announced plans to adopt a looser monetary strategy next year, signaling greater economic stimulus and easing measures ahead. Officials also vowed to implement a "more proactive" fiscal policy, suggesting the government is prepared to increase borrowing and deficit levels to support growth.
The policy shift was warmly welcomed by investors, who anticipate that the looser monetary conditions and potential economic boost could benefit XPeng's operations and growth prospects. The move reflects an urgency to step up the easing mode adopted by the central bank, as China aims to drive innovation and spur domestic demand amid global economic uncertainties.
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