Chinese EV and Solar Stocks Soared This Week

Group 1: Chinese Economic Stimulus - China's stimulus plan is projected to be $1.07 trillion, approximately 6% of its GDP, which has positively influenced investor sentiment towards the economy and domestic automobile demand [2] - Lower interest rates are expected to reduce borrowing costs for consumers, further supporting economic growth [2] Group 2: Electric Vehicle (EV) Market Performance - Zeekr delivered 21,333 vehicles in September 2024, marking a 77% increase year-over-year, with total deliveries reaching 142,873 in 2024, up 71% [3] - Li Auto reported 53,709 vehicle deliveries in September, reflecting a 48.9% increase from the previous year and an 11.6% rise from the previous month [3] - Despite concerns about a downturn in the Chinese EV market, strong delivery numbers have boosted investor confidence [3] Group 3: Solar Industry Developments - Daqo New Energy, a polysilicon provider, received an upgrade from HSBC, raising its stock rating from hold to buy, with a price target of $29.30 per share, up from $20 earlier in the week [4] Group 4: Market Sustainability Concerns - There are doubts about the sustainability of the recent rally in the Chinese economy, as domestic demand remains insufficient to support the industrial base, and exports face challenges from rising tariffs [5] - While stimulus measures may provide temporary relief, they do not address the fundamental issues affecting the EV and solar industries, such as tariffs and potential oversupply [5]