High-Flying Chinese EV Stocks Hit Roadblock Amid Domestic Regulatory Scrutiny

Posted by Shanthi Rexaline

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The buoyancy seen in the Chinese electric vehicles stocks faces risk in the wake of regulatory scrutiny by China.

What Happened: Chinese EV makers Nio Inc – ADR,  Xpeng Inc – ADR  and Li Auto Inc. which were all in record territory ahead of Tuesday’s modest pullback, are trading notably lower Wednesday morning.

The weakness is attributable to negative regulatory tidings out of China, which dragged China-listed new energy vehicle stocks sharply lower in the afternoon session.

The National Development and Reform Commission has sought that its local branches submit production and investment information for electric vehicle projects in their respective territories over the past five years, Nikkei reported, citing Chinese business publication Yicai, which in turn quoted a government document.

The commission specifically demanded details on projects of China Evergrande New Energy Vehicle Group and Baoneng Group, a conglomerate based out of Shenzhen…CLICK for complete article