Update: Added XPeng's comment and changed the headline.
With the inclusion in the list, investors in the Chinese mainland will be able to trade XPeng's stock more easily.
XPeng Motor shares traded in Hong Kong have been included in a mechanism that connects the Hong Kong and mainland stock markets, thus allowing mainland Chinese investors to buy them.
The Shenzhen Stock Exchange announced today that it has adjusted the list of Hong Kong-Mainland Stock Connect stocks to include XPeng Hong Kong shares, with effect from today.
The stock linking mechanism was launched in November 2014 to facilitate investors from Hong Kong and the mainland to buy each other's stocks.
With access to the list, mainland Chinese investors will be able to trade XPeng shares more easily, although investors with securities account assets of more than RMB 500,000 will only be eligible to participate in the mechanism.
"We are pleased to be included in the Stock Connect programs, which enable qualified Mainland Chinese investors to have direct access to our shares through the Stock Exchanges in the Mainland, " said Brian Gu, Vice Chairman and President of XPeng.
"The inclusion will not only further expand and diversify our investor base but also provide the opportunity for our customers, partners and EV and technology investors in China to participate in our exciting growth story," Gu added.
XPeng's inclusion in the programs marks another important milestone for the company. It is the first smart EV company listed in Hong Kong to be included in it, it said.
It was also the first smart EV company to achieve a dual-primary listing status on both the New York Stock Exchange and the Hong Kong Stock Exchange.
Hang Seng Indexes Company Limited announced on 8 July 2021 that XPeng meets the Fast Entry Rule of various indexes, and would be included as a constituent of several indexes, including the Hang Seng Composite Industry Index, the Hang Seng Composite LargeCap Index and the Hang Seng Consumer Goods & Services Index from 21 July 2021. Inclusion in the Hang Seng Composite Index is a key requirement for the Stock Connect scheme.
XPeng was listed in Hong Kong on July 7, 2021 and has accumulated a 16 percent decline until Tuesday.
As of press time, XPeng shares traded in Hong Kong are up more than 10 percent.
In addition to XPeng, its local counterpart Li Auto is also expected to be included in the mechanism next month.
CITIC Securities, one of China's top brokerages, expected Li Auto to be included in the Hong Kong-Mainland Stock Connect around March 14 in a report last month.