Chinese EV ADRs gained in morning trading. Li Auto, XPeng rose over 6%; Nio rose over 4%.
"The market has recently worried about the impact of China's Covid policy adjustment on the demand and supply of NEVs. We believe that the overall impact is limited," CICC analyst Deng Xue's team wrote in a research note.
On the demand side, the Covid infection since December did have some impact on sales of NEVs, mainly in terms of consumer visits to stores, the team said.
In addition, some salespeople have been affected, the team said, adding that these factors can create some disruption in the acquisition of new orders.
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