Nio stock up on hopes China could spark COVID restrictions

NIO Inc shares are trading higher Tuesday amid hopes that protests in China could spark an easing of COVID restrictions.

What To Know: China-based stocks suffered their worst day in more than a month on Monday after protesters in Shanghai and Beijing spoke out against China's strict zero COVID policy after a deadly fire in Urumqi. Protests have spread across the nation after the fire, as protestors claim it was caused by extreme lockdown measures that delayed rescue efforts.

The hopes of a loosening of China's COVID restrictions are on the rise after an official said Chinese authorities will adjust policies to reduce the impacts of current restrictions, per Reuters.

A separate report indicates that Beijing has started to reduce COVID restrictions. A local official said restrictions imposed to identify those infected shouldn't exceed 24 hours. Beijing plans to increase vaccination efforts among the elderly. Xinjiang officials stated that they will lift lockdowns in designated areas as soon as possible.

After a better than expected earnings result, Chinese stocks are getting a boost, according to the e-commerce platform Pinduoduo Inc PDD.

Pinduoduo reported third-quarter revenue of $4.99 billion, which beat average analyst estimates of $4.31 billion, according to Benzinga Pro. The company reported quarterly earnings of $1.21 per share, which beat the average estimate of 65 cents per share.

NIO Price Action: Nio has a 52 week high of $41.42 and a 52 week low of $8.38.

The stock was up 4.35% at $10.55 at the time of publication, according to Benzinga Pro.