Shares of NIO Inc. (NYSE: NIO) surged 10.87% on Monday after China’s National Development and Reform Commission outlined a 17-Point plan to boost private investment in various sectors.
NDRC’s Comprehensive Plan to Boost Private Investment
China’s National Development and Reform Commission (NDRC) released a 17-point statement on Monday, which included several pledges to bolster private investments in various sectors such as transportation, clean energy, new infrastructure, advanced manufacturing, and real estate.
Chinese authorities have been working to improve the business and investing climate in the country ahead of the Politburo meeting later this week, leading to increased investor optimism. NIO is among several Chinese companies that have seen a positive impact from these developments.
Analyst Nick Lai’s Positive Coverage and Price Target Increase
On Friday, Nick Lai, the analyst at JP Morgan, maintained coverage on NIO with a Neutral rating and increased the price target from $8.50 to $9.
The trading volume for NIO has been remarkably high, with 107,571,989 (107.57 million) shares exchanging hands on Monday. This figure is well above the stock’s 100-day average volume of 54.96 million shares.
Over the past three months, NIO has seen impressive gains, soaring nearly 40%. However, the stock remains more than 40% lower than its value a year ago. Retail investors have shown increased interest in NIO shares, as evidenced by trending discussions on platforms like StockTwits and Yahoo! Finance.
As of press time, NIO shares are trading at $11.73, up 10.87% compared to the previous trading session.