Xpeng Motors, which was listed in Hong Kong this week, will be included in the Hang Seng indexes later this month, which in Citi's view could be a positive catalyst for its stock.

The Hang Seng Indexes Company Limited said Thursday that Xpeng will be included in the Hang Seng Composite Index as well as the Hang Seng Consumer Goods Manufacturing and Services Index after the market closes on July 20, 2021, with effect from Wednesday, July 21, 2021.

Within the Hang Seng Composite Index, Xpeng is classified in the Hang Seng Composite Industry Index (Non-Essential Consumption), the Hang Seng Composite Large Cap Index and the Hang Seng Composite Large and Mid-Cap Index.

The move is expected to boost liquidity for Xpeng stock and increase the likelihood it will be included in the Hong Kong-Mainland Stock Connect as early as the fourth quarter, Citi analyst Jeff Chung said in a research note released Friday.

Underpinned by its strong product cycle, Xpeng should be able to continue to gain market share, Citi said.

Citi maintains a buy rating on Xpeng's US-traded ADRs and a $56.3 price target.

Xpeng closed down 3.54 percent to $40 on Thursday.

On July 1, FTSE Russell said in a statement on its website that Xpeng's ADSs will be included in FTSE Russell's global equity indexes, including the FTSE All-World Index, the FTSE Global Large Cap Index, and the FTSE Emerging Index, on July 8. the FTSE Emerging Index.

Xpeng's local peers Nio and Li Auto were both previously included in the FTSE Russell Global Equity Index, with Nio on September 2, 2020 and Li Auto on December 21, 2020.