Xpeng Inc (NYSE:XPEV) fetched significant inflows on the first day of inclusion in a stock connect program linking the Hong Kong stock market and Chinese mainland investors.
What Happened: Xpeng received inflows worth about $98.5 million (HK$765 million) of turnover by mainland Chinese investors through the stock connect mechanism, cnEVpost reported.
The development left Xpeng the eighth most traded stock in the Hong Kong-Mainland Stock Connect and the most net bought stock by mainland investors in the Hong Kong-Shenzhen Stock Connect on Thursday.
Why It Matters: The stock linking mechanism is aimed at allowing investors from Hong Kong and mainland China to buy stocks in the other region.
The Guangzhou, China-based Xpeng is seen as a rival to global EV leader Tesla Inc (NASDAQ: TSLA) and homegrown startup Nio Inc (NYSE: NIO).
Xpeng enjoys a dual-primary listing status; it debuted on the Main Board of the HKEX on July 7 last year and began trading on the New York Stock Exchange in August 2020.
Price Action: Xpeng shares closed 9.6% higher at $40.7 a share on Wednesday. The stock is down 19% year-to-date.
Photo: Courtesy of Xpeng
