What Happened: Li Auto passed the listing hearing held by the Hong Kong stock exchange, paving the way for its dual primary listing closer home, according to the company’s filings with the exchange.
Li Auto pursued a U.S. initial public offering in 2020 and its shares began trading on the Nasdaq on July 29, 2020. Since its history as a public company is less than the mandated two-year period for a secondary listing, the company is pursuing a dual primary listing.
The post-hearing information pack filed by Li Auto does not reveal the size of the Hong Kong offering.
Related Link: Xpeng Shares Open 1.8% Higher In Hong Kong On Debut
Why It’s Important: The Hong Kong listing, apart from giving the company access to Asian investors, will also act as a hedge against potential delisting from the U.S. The U.S. and China have a frosty relationship, and this has led to sanctions against Chinese companies.
The communist regime in China is also cracking down on Chinese companies that have listings overseas.
Nio, Inc. (NYSE: NIO) is also interested in a listing closer home. Reports suggested that company filed an application with the Hong Kong exchange in the third week of March. The company reportedly failed to receive the exchange’s blessings due to the user trust holdings of the company.
At last check, Li Auto‘s U.S.-listed shares were rising 1.45% to $30.72.
Related Link: Why Li Auto Is A ‘Quality Asset’ In Growing EV Space
© 2021 Fintech Zoom.com. Fintech Zoom does not provide investment advice. All rights reserved.