China’s battery maker and electric car companies were up from 1.5%-11% on hopes of “extraordinary policies to address the lack in downstream manufacturing companies”.

CATL largest battery supplier in the world and major Tesla supplier is up about 2% on China’s stock exchange. NIO and Xpeng are high-end electric car makers and are up about 11%.

The Nio and Xpeng stock moves are likely more related to restored production and open shopping in Shanghai. Nio opened up new electric car models (ES8, ES6 and EC6) for orders and is expecting deliveries to start in August, 2022.

China’s industrial regulator is set to introduce extraordinary policies to address the risk of a lack of investment momentum in manufacturing downstream companies whose profits are being squeezed.

China’s Ministry of Industry and Information Technology (MIIT) will study the introduction of extraordinary policies to stabilize growth, including structural reform on the supply side, boosting consumer demand, and increasing investment in technological transformation.

China is still under pressure to stabilize economic growth in the second half of the year, and extraordinary policy tools should start being implemented as soon as possible.

The belief is that China will start to introduce extreme policy measures in the next couple of months to get some decent economic growth in the second half of 2022 and beyond.

SOURCES- CNEVPOST
Written By Brian Wang, Nextbigfuture.com



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