U.S. Stock Market News | Hot Chinese Concept Stocks Surge in Early Trading, NIO (NIO.US) Rises Nearly 10%

According to the Securities Times app, on Tuesday, popular Chinese concept stocks surged in the early trading session. Nio (NIO.US) rose nearly 10%, XPeng Motors (XPEV.US) rose nearly 7%, NetEase (NTES.US), Pinduoduo (PDD.US), and KE Holdings (BEKE.US) all rose over 2%, while Li Auto (LI.US) rose nearly 2%. Despite the steady growth of the Chinese stock market (up over 42% in the past year in USD terms and up 26%+ from the beginning of the year until now), there are still many disputes over the strength and sustainability of the cyclical recovery. However, J.P. Morgan pointed out that the reasons for being optimistic about the Chinese market have shifted from loose policies and undervaluation to early-stage economic recovery. There are three reasons: 1. The divergence of the stock market from interest rates; 2. Increased liquidity - continuously rising and flowing into the market; 3. The October Plenum - a key driver of expectations for supply and demand in the real economy.