Shares of NIO Inc. ( NIO ) are trading lower Tuesday as part of a broader decline in U.S.-listed Chinese stocks. This selloff follows news that Chinese officials failed to meet investor expectations for substantial economic stimulus measures.

What To Know: The Hang Seng Index in Hong Kong, a key indicator of Chinese market performance, fell over 9%, marking its worst single-day decline since the global financial crisis in October 2008. The mainland's Shanghai Composite Index also faced significant volatility, although it closed up 4.6%, after fluctuating throughout the day.

The disappointing stimulus news came after weeks of positive performance in Chinese stocks, which had been influenced by optimism around potential fiscal support to boost China's slowing economy. The announcements included only a modest front-loading of 100 billion yuan for 2025 and another 100 billion yuan for construction projects.

Foreign investors, who have been key players in the recent rally of Chinese stocks, responded by quickly taking profits. This selloff extended to U.S.-listed Chinese stocks, including major companies like NIO, Li Auto Inc ( LI ). , XPeng Inc. ( XPEV ) , JD.com Inc. ( JD ) and Alibaba Inc. . Some analysts, such as those at Goldman Sachs, remain cautiously optimistic that China will introduce additional fiscal measures later in the year.

NIO Price Action: Nio shares were down by 6.91% at $6.32 at the time of writing, according to Benzinga Pro.

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