Analysis On The Motivation,Strategy And Effects Of Xpeng Automobile’s Dual Listing

Prior to 2018,the return of Chinese concept stocks required a complex process of privatization,dismantling of variable interest entities,abandonment of dual-class share structures and re-listing.Since 2018,HKEX has removed institutional obstacles and trading barriers,continuously changed the listing system,and allowed eligible Chinese concept stocks to return to Hong Kong for dual primary listing or secondary listing,enabling Chinese concept stocks to return to Hong Kong stocks without giving up overseas capital markets,and enriching the choice of return path for Chinese concept stocks.This article analyzes Xpeng Motors,the first company to return to Hong Kong through dual listing in recent years,through case analysis,to find out what can be learned in the process of dual listing.Firstly,the research results related to the return of Chinese concept stocks and dual listing are reviewed to clarify the research significance.Secondly,this paper reviews the development and return of Chinese concept stocks listed in the United States,and sorts out the relevant information such as the overview of Xpeng Motors,the subject of the case,and the process of dual listing in Hong Kong.Thirdly,based on the motivation of Xpeng Motors’ return to Hong Kong,the timing,market and method selection of return,the effect of dual listing in Hong Kong was analyzed from four aspects: business development,financial performance,market effect and potential risks.Finally,based on the analysis and study of the case,the research conclusions are summarized and corresponding suggestions are put forward.According to the study,Xpeng Motors’ dual listing is mainly to meet development needs,promote the company’s valuation rise,enhance brand influence and avoid cross-border regulatory risks.In terms of dual listing strategy,Xpeng Motors chose to return to dual listing of Hong Kong stocks when the national policy is strongly supported,the industry is developing rapidly,and the company’s performance is good and needs to seize the opportunity and get more capital attention and support.After the dual listing,Xpeng Motors’ business expansion has maintained the established pace,the company’s profitability and solvency have been improved,and the short-term market has also reacted positively to Xpeng Motors’ dual listing,avoiding political and legal risks to a certain extent.At the same time,however,dual listing in Hong Kong also brings new potential risks,such as insufficient liquidity in the Hong Kong market,high listing costs and double disclosure costs.By summarizing the specific practices and lessons learned in the process of Xpeng Motors’ return,it triggers enterprises,investors and regulators to think about the return of Chinese concept stocks,and supplements the domestic research on the return of Chinese concept stocks,in order to provide certain reference value for Chinese concept stocks preparing for the return in the future.