Chinese ADRs and ETFs extend rally in midday trading. Nio jumps over 12%; XPeng rises 11.8%; Tiger Brokers rises nearly 7%; YINN rises over 5%; Baidu, JD.com rise over 4%.
China's central bank launched a new lending tool on Monday to inject more liquidity into the market and support credit flow in the banking system ahead of the expiration of trillions of yuan in loans at the end of the year.
The People's Bank of China said in a statement it had activated the open market outright reverse repo operations facility to "maintain a reasonable abundance of liquidity in the banking system and further enrich the central bank's policy toolbox".
Despite taking effect on Monday, the PBOC did not mention the new tool in its open market operations statement.
In a separate statement announcing the new facility, the PBOC said it would use it to trade with primary dealers in OMO on a monthly basis.
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