NIO Inc.'s stock surged 5.21% in the 24-hour period leading up to Monday's intraday session, as China's decision to adopt a "moderately loose" monetary policy stance sent Chinese stocks and ETFs soaring in overnight trading.
In a significant policy shift, China's top leaders announced they will embrace a more accommodative monetary strategy in 2025, marking the first time the country has pivoted to a looser stance since the Global Financial Crisis in 2011. The Politburo, comprising the ruling Communist Party's most senior officials, also signaled a "more proactive" fiscal policy ahead.
This shift in monetary and fiscal policy, aimed at bolstering China's economic growth, sparked a rally in Chinese equities and related ETFs. Electric vehicle maker NIO Inc., along with other Chinese ADRs such as XPeng, Li Auto, and PDD Holdings, saw their shares surge over 4% in overnight trading following the policy announcement.