The three words "Hong Kong Stock Connect" have completely ignited the capital market's enthusiasm for XPeng.
This morning, the Shenzhen Stock Exchange announced that it will $XPeng (XPEV.US)$ include XPeng in the list of Hong Kong stocks eligible for trading under the Shenzhen-Hong Kong Stock Connect, effective from February 9.
Following this news, by the close of trading, XPeng’s Hong Kong stock $XPENG-W (09868.HK)$ soared 7.51%, closing at HKD 151.8.
This also means that XPeng has not only become the first new energy vehicle maker to be included in the Hong Kong Stock Connect but will also gain more capital inflow.
As a “seasoned leek” (retail investor), I seem to sense a subtle shift in the wind.
Last year, XPeng just claimed the top sales spot in the fiercely competitive “Powerhouse War” among new energy vehicle makers, basking in temporary glory. At the start of 2021, CICC and Citi consecutively raised their target prices for XPeng’s Hong Kong shares.
Now, it has once again become the 'first' new energy vehicle maker to enter the Hong Kong Stock Connect. What kind of signal does this convey?
And is this good news for XPeng, or a positive sign for all new energy vehicle makers?
If you are familiar with Hong Kong stocks, you will know that the Hong Kong Stock Connect pool has always been synonymous with quality companies, and many large-cap Hong Kong stocks saw their surge begin after being included in the Hong Kong Stock Connect.
One investor once said: 'Being included in the Hong Kong Stock Connect is the first criterion to determine whether a Hong Kong stock is worth investing.'
Indeed, for Hong Kong-listed companies, being included in the Hong Kong Stock Connect not only means...