Investors on the Chinese mainland are set to get the opportunity to invest in Xpeng and Li Auto, two of the main challengers to EV market leader Tesla, once the companies become eligible for the Stock Connect program, reports the South China Morning Post. The Stock Connect program is a cross-border trading scheme that allows mainland investors access to shares on overseas markets and vice versa.
The home-grown EV makers, which began trading in Hong Kong last year, could be eligible for the Stock Connect program from as early as this quarter when they meet the six-month trading rules, according to Citic Securities. They could join medical equipment maker Shanghai Microport Medbot and food wholesaler China Dili Group and 19 others in making the cut, it added.
The addition will give onshore investors access to two of the fastest-growing Chinese carmakers just when EV sales are taking off in the world’s biggest market. Such buying support offers tailwinds to the stocks that are forecast by analysts to appreciate by 51 to 69% over the next 12 months.
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