Nio, Li Auto Move In Sympathy As XPeng Makes Hong Kong Listing Plans Official

After months of speculation, XPeng Inc – ADR XPEV finally made its Hong Kong listing plans official with the filing of the listing document with the nation's stock exchange.

What Happened: XPeng has filed a post-hearing information pack, or PHIP, with the Hong Kong Stock Exchange following a successful listing hearing with the exchange.

The PHIP did not specify the size of the initial public offering in Hong Kong, although reports suggest the Chinese EV maker could raise as much as $2 billion.

Since XPeng doesn't have the mandated two-year listing track record needed for a secondary listing, it will likely pursue a dual primary listing.

XPeng began trading on the New York Stock Exchange in Aug. 2020 following an U.S. IPO.

Related Link: Nio Vs. XPeng: How Chinese EV Duo's May Deliveries Stack Up

Nio, Li Auto Also Nurture Hong Kong Ambitions: NIO Inc.-ADR NIO and Li Auto Inc LI are also reportedly mulling Hong Kong listings.

The frosty relationship between the U.S. and China poses a geopolitical risk to the Chinese companies listed in the U.S. A secondary listing in Hong Kong will likely serve as a hedge against a potential delisting in the U.S. if things sour.

Additionally, a listing in Hong Kong gives these firms, which operate in a capital-intensive industry, access to a widened investor base in Asia.

EV Stock Price Action: In premarket trading Wednesday, XPeng shares were up 4.44% at $41.71.

Nio was seen adding 3.31% to $45.56 and Li Auto was gaining 6.50% to $30.81.

Related Link: Why This Nio, Xpeng Analyst Is Bullish After Q1 EV Delivery Updates

(Photo: XPeng)