Chinese electric vehicle (EV) stocks rallied against a falling broader market in Hong Kong on Monday, as strong export data and rising oil prices bolstered the appeal of battery-powered and hybrid cars while a coming wave of model launches sparked hopes of a domestic demand recovery.
Nio surged 6.6 per cent to HK$52 as of the noon trading break, while BYD climbed 5.6 per cent to HK$111, the highest since October 2. Chery Automobile rose 1.3 per cent to HK$32.72, while Xpeng advanced 0.5 per cent to HK$67.35 and Zhejiang Leapmotor Technology added 0.4 per cent to HK$55.05. Geely Automobile and Lantu Auto also traded higher.
Hong Kong’s benchmark Hang Seng Index slipped 1.2 per cent to 25,587.26 as of the break.
The rally came as fresh data pointed to strong overseas demand. China exported 2.23 million vehicles in the first quarter, up 56.7 per cent from a year earlier, according to data released by the China Association of Automobile Manufacturers on Friday.
Within the total, exports of new energy vehicles (NEVs) – a category that comprises pure-electric and hybrid models – more than doubled from a year earlier to 954,000 units, while exports of petrol-burning cars rose 29.9 per cent to 1.27 million units, the data showed.
The strong export performance soothed investor concerns about anaemic domestic demand and improved profit prospects for Chinese carmakers, according to analysts.
“The rising popularity of Chinese-made EVs in overseas markets hugely eased investors’ worries about the sector’s outlook this year as domestic sales slowed,” said Phate Zhang, founder of Shanghai-based data provider CnEVPost. “Chinese carmakers enjoy high profit margins abroad because they can command higher prices there.”
Media365
