NIO Inc NIO shares are trading higher Thursday. Several Chinese stocks are getting a boost after China's central bank cut the borrowing cost of its medium-term policy loans.

What To Know: The People's Bank of China lowered the rate on one-year medium-term lending facility loans to some financial institutions from 2.75% to 2.65%, per Reuters.

The move represents the first cut to medium-term policy loans in 10 months and comes after China's central bank lowered its short-term lending rate from 2% to 1.9% earlier this week. 

The cuts aim to help improve market confidence given the country's sluggish post-pandemic recovery.

See Also: Jim Cramer Wishes China 'Good Luck' After Rate Cut: 'Any Stimulus ... Will Need Help From West'

Earlier this week, Nio announced plans to cut prices on all of its vehicle models by $4,200. The lower prices represent a pricing discount of 6% to 9% and went into effect Monday. The company also said buyers who place deposits will no longer receive free battery swap services starting this week.

NIO Price Action: Nio shares were up 3.58% at $9.37 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Nio.