Record high EV exports

Stocks in Hong Kong surged by the most in eight months today, and there were gains for mainland stocks as well after the State Council yesterday released 20 measures to reinforce Beijing’s “dynamic-zero” COVID policy, and the National Health Commission eased quarantine restrictions for incoming travelers. ADRs in the U.S. also rose sharply yesterday after inflation in the U.S. rose slightly less than expected.

Small drop in auto sales but record high EV exports: According to the China Association of Automobile Manufacturers, in October, auto sales were 2.505 million units, a decrease of 4% month-on-month and an increase of 6.9% year-on-year. Electric vehicle (EV) sales were 714,000 units, a month-on-month increase of less than a percentage point and a year-on-year increase of 81.7%. EV exports last month reached a record high of 109,000 units.

Drop in household loans: As per data released by China’s central bank, the People’s Bank of China 中国人民银行, renminbi loans increased by 615.20 billion yuan ($84.89 billion) in October, a year-on-year decrease of 211 billion yuan ($29.11 billion), in part explained by high credit issuance that took place in September. Household loans in October decreased by 18 billion yuan ($2.49 billion) but loans to enterprises increased by 462.6 billion yuan ($64.00 billion).

NIO still losing buckets of money: Yesterday, EV manufacturer NIO 蔚来汽车 announced a net loss for the third quarter of 4.11 billion yuan ($567.24 million), a year-on-year increase of 392.1%. The company is expecting large increases in sales and revenue in the fourth quarter.