Xpeng’s (XPEV) Hong Kong shares rose 11% in Asian trading on news that the electric vehicle maker’s stock has been added to 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 shares rose as much as 11% before paring gains. It was 9% higher in afternoon trading in Hong Kong.
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, the company 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. Xpeng has been launching new models, the latest being a sports utility vehicle. The Chinese electric vehicle maker has also been focused on expanding internationally.
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