Research On The Motivation And Effect Of XPENG Motors Dual Listing In Hong Kong

In recent years,the external environment faced by China concept stocks companies in the United States has changed a lot.On the one hand,they are frequently shorted by institutions and face potential delisting risk that caused by Holding Foreign Companies Accountable Act;on the other hand,the reform of listing system actively promoted by the Hong Kong Stock Exchange is very attractive,so many cases of China concept stocks returning to the Hong Kong market have been generated.Most China concept stocks have opted for a secondary listing in Hong Kong in the current wave of returns,although some unique companies have opted for a dual listing.This dual listing in Hong Kong has also opened a new way of thinking for China concept stocks that have not yet returned.Using the method of case study,this paper selects XPENG Motors,the first new force in China to realize the dual listing of "N+H",as the research object.Combining the China concept stocks regression and cross-listing,the motivation of XPENG Motors dual listing is analyzed firstly: External factors include deteriorating market conditions in the US stock market,a thicker "safety cushion" for dual listing in response to regulatory tightening,and the unique advantages of the inclusion of Hong Kong stock Connect,which attracted XPENG Motors’ return;The internal motivations are mainly due to their own conditions limiting the way of secondary listing,maintaining technological advantages in industry competition and the financing needs arising from the need for continuous expansion.Secondly,this paper uses the short-term event research method and finds that the capital market has a positive short-term market reaction to the dual listing of XPENG Motors.After dual-listing return to Hong Kong stock market,XPENG Motors’ operating effect has been improved to a certain extent;As a result of being included in the list of Hong Kong stock Exchange,its stock liquidity has also been significantly improved.Finally,this paper has some reference value for the regression of China concept stocks,so it puts forward relevant suggestions: China concept stocks should pay attention to the changes of market policy actively,and choose the regression way reasonably;The domestic market should speed up the reform progress to attract the return of high-quality China concept stocks.