Benzinga - NIO Inc (NYSE: NIO) shares are trading higher Monday amid protests over COVID-19 restrictions in China.
What's Going On: Protesters in Shanghai and Beijing spoke out against China's strict zero COVID policy over the weekend after a deadly fire erupted in Urumqi. Reports indicate that several people voiced concerns, claiming the fire was caused by extreme lockdown measures which delayed rescue efforts.
Local residents started protesting near the location of the fire. According to reports, the protests have spread across several other cities and dozens of university campuses.
What Else: The People’s Bank of China on Friday announced that it will cut the reserve requirement ratio for Chinese banks by 0.25%. The move is expected to free up $70 billion for banks to stimulate the country's economy.
On Friday, Bank of America (NYSE:BAC) economist Helen Qiao said the ratio reduction is positive, however, the China bull case is still all about COVID-19.
"Without allowing people to resume a normal lifestyle, additional fiscal stimulus and monetary easing will only generate very little impetus for demand recovery," Qiao said.
Related Link: China Cuts Bank Reserve Requirements, But Chinese Stocks Drop As Beijing Locks Down Following Latest COVID-19 Outbreak
NIO Price Action: Nio has a 52-week high of $33.80 and a 52-week low of $8.37.
The stock was up 2.02% at $10.38 at time of publication, according to Benzinga Pro.
Photo: courtesy of Nio.
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