Shares of Li Auto Inc., the Chinese electric vehicle maker, surged nearly 6% in premarket trading on Thursday, as Chinese ADRs and ETFs broadly rebounded amid investor optimism over Beijing's economic stimulus measures.
The EV startup's stock climbed 5.9% to reach $21.35 before the opening bell, part of a broader rally in Chinese technology and EV stocks. Other major Chinese EV makers like NIO and XPeng also saw substantial premarket gains, rising 4.8% and 6.2% respectively.
According to analysts at JPMorgan, the sharp rally in Chinese ADRs over the past week has been mostly driven by fresh buying rather than short covering. Investors appear to be sweeping up Chinese stocks, particularly in the EV and tech sectors, after the government announced measures to stimulate the nation's troubled economy.