Xpeng shares increased by 11% as EV makers added to mainland China stock trading links

February 10, 2022: -Xpeng Hong Kong shares include a trading link to mainland China, known as the Shenzhen-Hong Kong Stock Connect.

The move allows investors based in mainland China more accessible access to the electric car start-up’s shares, potentially allowing them to expand their investor base.

Xpeng’s Hong Kong-listed shares increased nearly 11.5% before paring gains. It was nearly 9% higher in afternoon trade.

“The inclusion will not expand and diversify our investor base but provide the opportunity for our customers, partners, and EV and technology investors in China to participate in the exciting growth story,” Brian Gu, president of Xpeng, said in a statement.

The Shenzhen-Hong Kong Stock Connect is launching in 2016 to make it easier for international investors to trade Chinese mainland-listed stocks and investors in mainland to buy and sell Hong Kong-listed shares.

Xpeng has been a bit aggressive in trying to expand its investor base.

In 2020, it went public in the U.S. Just under a year later, and it carried out a dual-primary listing in Hong Kong. The company tries to tap investors when China’s electric car market grows.

China’s electric vehicle start-ups like Xpeng, Nio, and Li Auto are intense competition against Tesla and other traditional auto players.

Xpeng has been launching recent 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.