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).