With MSCI set to announce new quarterly assessments early next month, analysts expect Chinese electric vehicle (EV) maker Li Auto (NASDAQ: LI) could be included in some of the indexes, bringing inflows to the US-listed Chinese auto company.
In a report released Tuesday, Smartkarma analyst Brian Freitas said MSCI is scheduled to announce the results of the February 2021 Quarterly Index Review (QIR) on February 9 with the changes implemented after the close of trading on February 26.
The review period for price cut-off began yesterday and will run through to January 29. Most of the changes in the review are expected in China, with Li Auto among stocks expected to be added to the MSCI China and MSCI Standard indices.
Other stocks expected to be added include Nongfu Spring (9633 HK), Li Auto Inc. (LI US), Ming Yuan Cloud Group (909 HK), China Resources Mixc Lifestyle Services (1209 HK), he said.
On August 28, MSCI announced changes to the MSCI China All Ordinaries Index to include Chinese EV maker Xpeng Motors as a constituent of the MSCI China Standard Index and a constituent of the MSCI China Free Large Cap Index, which were effective from September 11.
The move was thought to have brought inflows of passive investment funds, such as ETFs, to the Alibaba-backed company.
Xpeng was listed on the New York Stock Exchange on August 27 under the symbol "XPEV".
Li Auto went public on the Nasdaq on July 30, 2020. Its shares have doubled since IPO to close at $32.6 in its last trading session.
