Electrical-car maker Li Auto Inc. kicked off a near-$2 billion inventory providing in Hong Kong, becoming a member of a string of U.S.-listed Chinese language firms in tapping investors nearer to house.
The Nasdaq-listed maker of electrical cars is pushing forward with the inventory sale regardless of a recent selloff in offshore-listed Chinese language shares, which was once fueled by means of a raft of reputable movements towards sectors like tutoring, ride-hailing, food-delivery and belongings.
Many different U.S.-traded Chinese language firms, together with Alibaba Crew Protecting Ltd. and JD.com Inc., have listed in Hong Kong lately. In addition to elevating finances, they have got sought to get entry to buyers who’re extra aware of companies from China, and to hedge towards probably being kicked off U.S. markets.
However not like maximum of the ones firms, Li Auto is following fellow EV maker XPeng Inc. in acquiring what’s referred to as a twin number one list quite than a secondary one. That implies it has to apply Hong Kong disclosure and corporate-governance requirements extra intently.
Opting for this direction permits Li Auto to record in Hong Kong previous after going public within the U.S. It’s going to additionally permit Li Auto stocks to be purchased and bought by means of buyers in mainland China by means of a buying and selling hyperlink.