The two indices, which will be officially launched on July 6, are expected to provide exposure to Chinese investors bullish on the smart electric vehicle sector.
(Image credit: CnEVPost)
Tesla, along with its Chinese peers NIO, XPeng Motors, and Li Auto, will be included in two new indices by a local index provider next month, which is expected to bring them additional passive inflows.
China Securities Index Co Ltd (CSI) will officially launch the CSI Global Intelligent Vehicle Index, CSI HK and US Listed Intelligent Vehicle Index, CSI 300 Bank and Insurance Index, and CSI 800 Bank and Insurance Index on July 6, according to an announcement made today.
The two smart vehicle-related indices will include 50 constituents whose businesses are in the areas of sensing and positioning, decision planning, control execution, intelligent cockpits and connected vehicles, according to the announcement.
The CSI Global Intelligent Vehicle Index already includes 50 constituents, with Tesla (NASDAQ: TSLA), NIO (NYSE: NIO, HKG: 9866, SGX: NIO), XPeng Motors (NYSE: XPEV, HKG: 9868) and Li Auto (NASDAQ: LI, HKG: 2015) are included.
Other companies in the index include Baidu, Google, Intel, Nvidia, NXP Semiconductors, and Tusimple Holdings.
The CSI HK and US Listed Intelligent Vehicle Index currently has 37 constituents, including Tesla, NIO, XPeng, Li Auto, Baidu, Google, Intel, Nvidia, NXP Semiconductors, and Tusimple Holdings.
CSI was established in August 2005 as a financial market index provider jointly funded by the Shanghai and Shenzhen stock exchanges, according to a profile on its official website.
Currently, CSI manages more than 5,000 indices covering a wide range of asset classes, including stocks, bonds, commodities, index futures, and funds.
Being included in CSI's indices means that money from funds tracking these indices will be able to flow into its constituent stocks, potentially providing more investment channels for Chinese investors who are bullish on the smart electric vehicle industry.
NIO has been included in the Hang Seng Composite Index and the Hang Seng Tech Index, effective Monday, June 13, according to the Hang Seng Indexes Company Limited (HSI) quarterly review results released on May 20. XPeng and Li Auto have also been previously included in these two indices.
NIO's inclusion in the Hang Seng Tech Index is expected to bring in $44.3 million in passive inflows, according to a research note issued by CICC analyst Liu Gang's team on May 23.