Earlier, according to the announcement of Shenzhen Stock Exchange, XPeng was officially included in the list of Hong Kong-Mainland stock connect, which took effect today (February 9), becoming the first Chinese automaker to be included in the Hong Kong-Mainland stock connect.
XPeng was first listed in the United States in 2020 then returned to Hong Kong on July 7 last year. After being included in Hong Kong-Mainland stock connect, qualified China domestic investors can buy XPeng (9868.HK) Hong Kong stocks. The Hong Kong-Mainland stock connect stock linking mechanism was launched in November 2014 to facilitate Hong Kong and China investors to buy each other’s stores.
With access to the list, investors will be able to trade XPeng shares more easily, which is expected to improve the companies’ stock liquidity. Although investors with more than $500 thousand RMB securities account assets will only be eligible to participate in the mechanism. Inspired by this news, XPeng stock price surge high in the opening today, up nearly 12% at most, at $157.5 HKD. It stay at $157.4 HKD at noon, still up 11.47%, with a turnover of $741 million HKD.
XPeng 2021 Recap
In 2021, the total delivery volume of XPeng reached 98,155 units, 3.6 times that of 2020. As of the end of last year, the cumulative delivery volume of XPeng in history exceeded 130,000 units. As of January 2022, the total delivery of XPeng has surpassed 150,000 units. Its three models on sale, the XPeng P7, P5, and G3 have all become hot-selling models in their respective categories. Besides, the new flagship model, G9 is being released. It was highly praised by the market, with strong product competitiveness and strong market demand.
XPeng Valuation
CICC, Citi Bank and other financial institutions have recently raised the target price of XPeng Hong Kong shares, with the highest target price reaching $357 HKD. They stated that XPeng insists on self-research on software and hardware, builds technological advantages and business model innovation, realizes the first implementation and rapid replacement of intelligent functions. Smart cockpit and other breakthroughs continuously consolidate and strengthen its differentiated advantages. It is expected that the OTA (wireless network download) of NGP (automatic navigation assisted driving) of Xpeng in the future city, the listing of the flagship model G9, and the company’s announcement to explore the Robotaxi business will all be is a favorable factor.
Regarding listing, Brian Gu, president of XPeng said, “We are pleased to be included in the Stock Connect programs, which enable qualified Mainland Chinese investors to have direct access to our shares through the Stock Exchanges in the Mainland. 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.”
