China’s Tesla rival share rises with Hong Kong debut

The Xpeng P7 electric vehicle is on display at the 18th Guangzhou International Automobile Exhibition at the China Import and Export Fair Complex held in Guangzhou, Guangdong Province, China on November 20, 2020.

VCG | Visual China Group | Getty Images

Guangzhou, China — US-listed electric car maker Xpeng shares rose on Wednesday with its debut in Hong Kong.

Xpeng has issued 85 million Class A Common Shares at a price of HK $ 165 per share. These stocks rose 1.8% to HK $ 168.

Electric vehicle manufacturers are already listed in the United States. Chinese companies that are usually listed on Wall Street do what is commonly referred to as a secondary listing in Hong Kong. This is where a company listed on one exchange sells its shares on another exchange.

However, Xpeng’s share offering is a dual primary list. This means that it is subject to the rules and oversight of both US and Hong Kong regulators, but not for dual-listed companies.

Electric car maker Last month, it said its share price would be less than HK $ 180 per share... Xpeng has raised a total revenue of HK $ 14.02 billion ($ 1.8 billion).

US-listed Chinese companies are considering listing on Hong Kong as a way to hedge tensions between China and the United States.

Earlier this year, the US Securities and Exchange Commission adopted the rules These requirements, which impose stricter auditing requirements on US-listed foreign companies, pose a threat to delisting companies that violate the rules.

“I think our listing in Hong Kong is a very strategic decision, and it’s clear that hedging against geopolitical risk is just one consideration,” said Brian Gu, president of Xpeng. I told Emily Tan of CNBC.

“But in the long run, we are a Chinese consumer brand and we want to create a listing place that brings us closer to our homes. Ultimately, with our customers as shareholders, Hong Kong (Hong Kong) ) Qualifies to connect to the Chinese capital markets. “

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However, US-listed Chinese companies may also face scrutiny domestically. on Tuesday, Beijing said it would strengthen oversight of companies listed abroad.. The government plans to improve rules on cross-border data flow and security.This move was made by regulators with Didi, a ride-hailing service company. Force deletion to app store From the download A few days after the initial public offering in the United States..

Xpeng, known for its P7 sedan and G3 SUV, Delivered 6,565 vehicles in June — This is a monthly record, up 617% year-on-year. The Guangzhou-based company surpassed its own guidance and delivered 17,398 vehicles in the second quarter of this year.

In April, car makers Third production model, P5 sedan, Li Auto, Tesla, Nio and other rivals are intensifying competition. China’s Tesla rival share rises with Hong Kong debut

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