XPeng bucks trend in Hong Kong by nearly 3%, stock to be included in Hang Seng Index on Wednesday
XPeng Motors closed up 2.9 percent to HK$156.1 in Hong Kong on Tuesday, with its shares set to be included in the Hang Seng Index on Wednesday. In the past three trading days, the stock has gained nearly 9 percent.
For comparison, the Hang Seng Index and Hang Seng TECH Index closed down 0.84 percent and 1.27 percent, respectively, on Tuesday.
XPeng was listed in Hong Kong on July 7. On July 8, Hang Seng Indexes Company Limited said XPeng will be included in the Hang Seng Composite Index and the Hang Seng Consumer Goods Manufacturing and Services Index after the market close on July 20, 2021, effective Wednesday, July 21, 2021.
Within the Hang Seng Composite Index, XPeng is classified in the Hang Seng Composite Industry Index (Non-Essential Consumption), the Hang Seng Composite Large Cap Index and the Hang Seng Composite Large and Mid-Cap Index.
The move is expected to boost liquidity for XPeng stock and increase the likelihood it will be included in the Hong Kong-Mainland Stock Connect as early as the fourth quarter, Citi analyst Jeff Chung said in a research note released July 9.
Underpinned by its strong product cycle, XPeng should be able to continue to gain market share, Citi said.
Citi maintains a buy rating on XPeng's US-traded ADRs and a $56.3 price target.
On July 1, FTSE Russell said in a statement on its website that XPeng's ADS will be included in FTSE Russell's global equity indexes, including the FTSE All-World Index, the FTSE Global Large Cap Index, and the FTSE Emerging Index, on July 8.
XPeng's local peers NIO and Li Auto were both previously included in the FTSE Russell Global Equity Index, with NIO on September 2, 2020 and Li Auto on December 21, 2020.