Shares of Nio Inc. and Alibaba Group Holding Ltd, along with other China-based companies, received a significant boost on Friday following the proposal by the Cyberspace Administration of China to ease cross-border data-security controls.
Nio Inc.'s Stock Performance
Nio’s stock (NIO) surged by 3.7% in premarket trading, indicating a potential extension of its four-day winning streak. This streak began after the stock hit a 3 1/2-month low on March 25, despite the denial by the electric-vehicle manufacturer of a Bloomberg report suggesting a $3 billion capital raise.
Positive Movement among Other Chinese EV Makers
In addition to Nio, other China-based electric vehicle (EV) makers also experienced positive movement in their stock prices. Li Auto Inc. (LI) jumped 2.6%, bouncing back from a three-month low, while Xpeng Inc. (XPEV) saw a surge of 4.5%.
Alibaba Stocks on the Rise
Shares of e-commerce giant Alibaba (BABA) climbed by 2% before the market opened. This followed the news that Alibaba's logistics unit, Cainiao Smart Logistics Network, had filed for an initial public offering in Hong Kong earlier in the week.
Proposed Easing of Regulations
The boost in stock prices was triggered by draft rules proposed by China's cyberspace regulator, which would significantly relax regulations on data transfers relating to international trade, global manufacturing, and marketing activities that do not involve personal information. This move aims to eliminate the need for rigorous security reviews, according to Dow Jones Newswires.
The proposed changes are currently open for public comments.
Market Response and Other Companies
Ahead of Friday's open, the iShares MSCI China ETF (MCHI) saw a rise of 1.7%, while S&P 500 index futures (ES00) gained 0.4%.
Other companies also experienced positive movement in their stock prices. Bilibili Inc. (BILI), an online-entertainment content provider, rose by 2.5%, while e-commerce company JD.com Inc. (JD) gained 2.6%. Mobile-marketplace company PDD Holdings Inc. (PDD) saw a 1.9% increase, and real estate services platform KE Holdings Inc. (BEKE) was up by 2.4%.
Year-to-Date Performance
Nio's stock has experienced an 8.6% decline year-to-date through Thursday, while Alibaba's shares slipped by 2.9%. The MSCI China ETF saw a drop of 9.6%, whereas the S&P 500 recorded a gain of 12%.
