Xpeng’s Hong Kong shares have been included in a trading link to mainland China, known as the Shenzhen-Hong Kong Stock Connect.
The move will allow investors based in mainland China easier access to the electric car start-up’s shares, potentially allowing the company to expand its investor base.
Xpeng’s Hong Kong-listed shares rose as much as 11.5% before paring gains. It was about 9% higher in afternoon trade.
“The inclusion will not only further expand and diversify our investor base but also provide the opportunity for our customers, partners and EV and technology investors in China to participate in our exciting growth story,” Brian Gu, president of Xpeng, said in a statement.
The Shenzhen-Hong Kong Stock Connect was launched in 2016 as a way to make it easier for international investors to trade Chinese mainland-listed stocks and investors in China’s mainland to buy and sell Hong Kong-listed shares.Xpeng has been quite aggressive in trying to expand its investor base.
In 2020, it went public in the U.S. Just under a year later, it carried out a dual-primary listing in Hong Kong. The company is trying to tap investors at a time when China’s electric car market continues to grow.
China’s electric vehicle start-ups such as Xpeng, Nio and Li Auto are in intense competition with one another, as well as against Tesla and other traditional auto players.
Xpeng has been launching new models, the latest being a sports utility vehicle in November. The Chinese electric vehicle maker has also been focused on expanding internationally.
However, the global chip shortage is a headwind for Xpeng and its rivals.