Hong Kong’s market performance followed the overnight advance in US stocks, as the Federal Reserve released dovish signals.
Electric vehicle (EV) stocks trading in Hong Kong are higher in early trading, as the market rallies.
As of press time, Nio (NYSE: NIO, HKG: 9866) was up 1.97 percent, Xpeng Motors (NYSE: XPEV, HKG: 9868) was up 4.55 percent, Li Auto (NASDAQ: LI, HKG: 2015) was up 2.89 percent and BYD (OTCMKTS: BYDDY, HKG: 1211) rose 2.2 percent.
Hong Kong’s Hang Seng Index rose 1.91 percent, while the Hang Seng Tech Index gained 2.62 percent.
Hong Kong’s market performance followed the overnight advance in US stocks, after the dovish signals released by the Federal Reserve.
The Fed released its resolution for the May Federal Open Market Committee (FOMC) meeting on Wednesday, announcing a 50 basis point rate hike and the start of balance sheet reduction in June. The Fed’s policy rate is now set at a range of 0.75 percent to 1 percent.
Fed Chairman Jerome Powell made it clear that the FOMC was not considering a 75 basis point range of rate hikes, boosting investor confidence.
Following the Fed’s rate hike, Hong Kong also raised its benchmark interest rate to 1.25% from 0.75% as per usual practices.
For EV companies, there were other notable developments overnight as well.
After Li Auto, Nio, as well as Xpeng, were added to the list of Chinese companies facing possible delisting, with the list becoming longer as expected.
The SEC’s list, updated on May 4, shows that 88 companies, including Nio, Xpeng, EHang Holdings, JD.com, and Pinduoduo, were added to the provisional list of issuers identified under the Holding Foreign Companies Accountable Act (HFCAA).
Under the HFCAA, the SEC has the authority to delist a foreign listed company from the exchange if it fails to file reports required by the Public Company Accounting Oversight Board (PCAOB) for three consecutive years.
Nio, Xpeng and 86 others added to SEC’s list of firms facing possible delisting
