China EV Stocks Surge Amid Beijing’s Plans for Sector Growth – BYD and Nio Gain Over 3%

Hong Kong, China – Shares of Chinese electric vehicle companies listed in Hong Kong experienced a boost in late morning trading following the announcement of China’s plan to promote the growth of the new energy vehicle sector in the country. According to the plan revealed by China’s commerce ministry, the healthy development of new energy vehicle trade cooperation will help in stabilizing and optimizing the structure of foreign trade, and promote the transformation and upgrading of the automobile industry. This news led to an increase in shares of companies such as BYD Company, Nio, Xpeng, and Li Auto. The Hang Seng index gained 0.3%, while the CSI 300 index added 0.4%.

Earlier this year, BYD produced more than 3 million new energy vehicles in 2023, surpassing U.S. EV leader Tesla’s production numbers for a second consecutive year. The strong performance of these Chinese EV companies is indicative of the rapid growth and development of the new energy vehicle market in China.

In other news, China’s largest chipmaker SMIC cautioned about persistent global macroeconomic headwinds and geopolitical tensions affecting its business in 2024. The company posted a 54.7% drop in fourth-quarter profit, attributing it to inventory corrections and macroeconomic headwinds. Decline in profit, drop in gross margin, and challenges related to macroeconomics, geopolitics, industry competition, and inventory remain as key concerns for the company moving forward.

Meanwhile, Kakaobank shares surged after reporting higher fourth-quarter profit, along with an increase in its customer base. Operating revenue for the company saw a significant increase from the year-ago quarter, showcasing its continued growth and success in the digital payments sector.

Australian energy firm Santos experienced a setback as it became the largest loser on the S&P/ASX 200 after merger talks with Woodside ended. The news led to a sharp decline in Santos’ shares, while Woodside saw a gain in its stock value.

These developments and market movements showcase the dynamic nature of the global financial landscape, with companies in various sectors facing unique opportunities and challenges in today’s economy. The continuous evolution of these industries will undoubtedly impact investors and stakeholders in the coming days.