“Tesla of China” XPeng Set to Join Hang Seng Composite
XPeng has been dubbed the “Tesla of China” by more than one outlet in recent months. Based on its strong starting sales performance and its significant growth since, it may not be a totally unlikely analogy — and investors hope the comparisons to Tesla continue when XPeng is added to the Hang Seng Composite Industry Index after the stock market closes on July 20th of this year.
“As a front runner in China’s Smart EV industry, we are delighted to be included in the Hang Seng Composite Index,” said Dr. Brian Gu, XPeng Vice Chairman and President of the company. “Inclusion in the Hang Seng Composite Index and the primary listing status in Hong Kong are the key requirements for the Stock Connect scheme.”
What Gu is referring to is interesting, from a financial perspective, because it’s a dual listing. In addition to XPeng being added to the Hang Seng Composite Industry Index, the company is also being added to Hang Seng Composite LargeCap Index, the Hang Seng Composite LargeCap & MidCap Index, and the Hang Seng Consumer Goods & Services Index. That’s down to XPeng meeting the Fast Entry Rule of various indexes, which I was able to Google but not totally understand — but it seems like Alibaba also qualified for fast entry and did well, so there’s that.
XPeng (XPEV) is also traded on the New York Stock Exchange (NYSE), as many readers know.
The XPeng G3, shown here, is one of the company’s hot sellers, and it just got an upgrade to go along with the stock news (story coming). With a range of about 320 miles NEDC and a price tag significantly lower than a Tesla Model Y — not to mention a comparable suite of tech features that, on paper, make it seem like the XPeng is an apples-to-apples comparison to the Tesla — it’s no wonder that the brand is growing quickly. Even so, the listing on multiple indexes will have to be explained by someone with a wrinklier brain than mine.
For what it’s worth, however, XPeng believes the move will encourage more interest from Chinese investors who may be XPeng customers as well. “This dual-primary listing (on Hang Seng Index) not only broadens the Company’s access to capital, diversifying its investor base,” reads the official release, but also allows “direct access to China-based investors, who are likely to be XPeng’s customers.”
Kind of cool to think about what XPeng’s version of a Teslanaire will be called, isn’t it? XPenganaire doesn’t have quite the same vibe, but XXPenger for someone owning double digits of stock? XXXXPenger for four digits? What do you guys think? Scroll on down to the comments and share your clever ideas there. Enjoy!
Source | Images: XPeng, via EV Obsession.
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