Industry dynamics

CITIC Securities expects mainland investors to be able to buy Xpeng HK shares in Feb and Li Auto in March

Publishtime:1970-01-01 08:00:00 Views:32

Xpeng is expected to be included in the Hong Kong-Mainland Stock Connect around February 11, while Li Auto is expected to see this happen around March 14, CITIC Securities said.

CITIC Securities, one of China's top brokerages, expects Xpeng Motors and Li Auto shares traded in Hong Kong to be included in a mechanism linking Hong Kong and mainland stock markets within the next 2-3 months, allowing mainland investors to buy into the two new car makers.

Xpeng is expected to be included in the Hong Kong-Mainland Stock Connect around February 11, while Li Auto is expected to see this happen around March 14, CITIC Securities said in a research note released today.

The stock connect was launched in November 2014 to facilitate investors in Hong Kong and the mainland to buy each other's stocks.

The final list of the Hang Seng Composite Index review for the year 2021 will be announced on February 18, 2022 and will officially take effect on March 7, and the list of those included in the Hong Kong-Mainland Stock Connect will also take effect on the same date, CITIC Securities noted.

According to the latest requirements, CITIC Securities believes that 21 stocks traded in Hong Kong, including Xpeng and Li Auto, are very likely to be included in the mechanism.

After being added to the list, investors in the mainland will be able to trade their stocks more easily, although only investors with securities account assets of more than RMB 500,000 will be eligible to participate in the mechanism.

Xpeng began trading in Hong Kong on July 7, 2021 and has gained a cumulative 12 percent to date. Li Auto began trading in Hong Kong on August 12 last year and has gained 3 percent to date.

As of press time, Xpeng is up 0.54 percent in Hong Kong and Li Auto is up 2.89 percent.