Shares of Chinese electric vehicle maker NIO Inc. plummeted by over 5% on Thursday, as the company's stock was caught in a broad selloff of Chinese equities after Beijing's latest stimulus measures fell short of market expectations.
China on Friday unveiled a five-year package totaling 10 trillion yuan ($1.4 trillion) aimed at tackling mounting debt levels at its local governments. The plan will allow local authorities to sell bonds and swap out their existing debt, but it stopped short of providing broader fiscal support to boost the country's sluggish economy.
The disappointing stimulus package triggered a selloff in China-focused exchange-traded funds (ETFs) and stocks of Chinese companies listed on U.S. exchanges, including NIO. Analysts had anticipated a more substantial stimulus package from Beijing, particularly after the election of Donald Trump as the next U.S. president raised concerns about potential trade tensions between the two countries.
