Shares of XPeng Inc. (XPEV), a leading Chinese electric vehicle maker, soared 11.77% on September 24th, driven by a combination of positive developments for the company and the broader Chinese market.
The rally was fueled primarily by China's central bank unveiling a sweeping stimulus package aimed at reviving the nation's faltering economy and bolstering its beleaguered stock market. The measures include providing at least 800 billion yuan ($113 billion) in liquidity support for the equity market, potentially through the establishment of a stock stabilization fund.
Additionally, the People's Bank of China announced plans to lower borrowing costs on mortgages worth $5.3 trillion and ease rules for second-home purchases, in a bid to shore up the troubled property sector. These steps, coupled with interest rate cuts and reductions in reserve requirements for banks, sent Chinese stocks soaring, with XPeng and other EV makers among the top gainers.
Adding to the upbeat sentiment, XPeng revealed plans to expand its global footprint by entering the Qatar automotive market. The company inked a deal with distributor Pioneer Motors and will offer several of its vehicles, including the P7 sedan and G6 SUV, before the end of the year. This move is seen as a strategic step towards establishing a stronger presence in the Middle East region.