Shares of many Chinese companies are getting hit hard today, including several of China's electric vehicle (EV) makers. Shares of Nio (NYSE: NIO), XPeng (NYSE: XPEV), and Li Auto (NASDAQ: LI) all plunged by double digits Monday morning. As of 10:53 a.m. ET, Nio shares were down 20.6%, XPeng was lower by 18.8%, and Li Auto had plunged 24.1%. 

These names are reacting to news that Chinese President Xi Jinping locked in a third term and selected a group of loyalists for top leadership spots at the Communist Party Congress. Investors fret that could have negative implications for private Chinese companies as well as the country's economy in general.

It implies the continuation of Xi's zero-COVID policy that has led to lockdowns. These lockdowns have crimped both supply and demand in some areas. Xi has also sought to regulate the tech industry and attempt to restrict wealth inequality by clamping down on some successful businesses and their founders. But investors also are reacting to other news that is unique to the EV industry. 

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Source Fool.com