The mainland-Hong Kong stock connect includes two channels, Shenzhen and Shanghai, and Li Auto's shares traded in Hong Kong were included in the Shenzhen channel last month.
After being included in the Shenzhen-Hong Kong stock connect last month, Li Auto (NASDAQ: LI, HKG: 2015) has been included in a similar channel in Shanghai.
An announcement on the Shanghai Stock Exchange's website today said Li Auto's Hong Kong-traded shares were added to the Shanghai-Hong Kong Stock Connect list, which will take effect on the next trading day.
On March 14, the Shenzhen Stock Exchange announced that it had adjusted the Shenzhen-Hong Kong Stock Connect list of stocks to include Li Auto Hong Kong-trade stock.
The mainland-Hong Kong Stock Connect mechanism was launched in November 2014 to facilitate investors in the two regions to buy each other's stocks.
With access to the list, investors in the Chinese mainland will be able to trade Hong Kong stocks more easily, although only investors with securities account assets of more than RMB 500,000 are eligible to participate in the mechanism.
The mainland-Hong Kong Stock Connect facility consists of two channels, Shenzhen and Shanghai, which operate independently. Hong Kong stocks bought by investors using a Shenzhen account can only be sold through that account, and the same is true for Shanghai.
Li Auto's local peer Xpeng Motors (NYSE: XPEV, HKG: 9868) was included in the Shenzhen-Hong Kong Stock Connect on February 9 and in the Shanghai-Hong Kong Stock Connect on February 18.
Nio (NYSE: NIO, HKG: 9866) was listed in Hong Kong as a secondary listing on March 10, unlike Xpeng and Li Auto, both of which were listed in Hong Kong as dual primary listings last year.
Companies applying for dual primary listings need to meet various regulatory requirements for both listing locations, which is a more complex and time-costly process, but is one of the necessary requirements for inclusion in the mainland-Hong Kong stock connection.
This means that under the current rules, Nio's shares cannot be included in the mainland-Hong Kong Stock Connect.
Li Auto's shares traded in Hong Kong fell 3.04 percent to HK$91.05 today.
https://cnevpost.com/2022/02/28/nio-confirms-it-has-also-applied-for-secondary-listing-in-singapore/
