Why XPeng, Li Auto, and Even Cleveland-Cliffs Stocks Soared This Week

China stocks rallied this week. That came after China's central bank initiated new stimulus packages and followed the U.S. Federal Reserve 50 basis point cut in interest rates last week. China's central bank didn't just act on interest rates.It moved to bolster business and consumer activity by cutting interest rates on existing mortgages and the reserve requirement ratio for banks by 50 basis points. The latter will free up meaningful amounts of money for lending. Government leaders followed up on the bank moves, showing support for the economy and the stock market. That all led to the soaring of shares of China-based electric vehicle (EV) makers listed on U.S. exchanges.That included XPeng (NYSE: XPEV) and Li Auto (NASDAQ: LI), which were higher for the week by 27.4% and 17%, respectively, as of Friday morning, according to data provided by S&P Global Market Intelligence. Investors also pushed shares of U.S.-based steelmaker Cleveland-Cliffs (NYSE: CLF) higher by 10.4%. While that might not seem related, it is and in an important way that U.S. investors should be aware of.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool