Stocks

XPeng (XPEV) set for dual listing

On Wednesday, XPeng (XPEV) submitted an amended listing form, indicating that it has received bourse approval. Xpeng’s funding sum was not specified in the filing, which verified an earlier Bloomberg News article. According to people familiar with the subject who asked not to be identified because the information is private, the electric vehicle producer could raise as much as $2 billion in Hong Kong as soon as this year.

Xpeng’s listing would bring an end to a temporary lull in such share sales by US-listed Chinese companies, with online travel company Trip.com Ltd. being the most recent, raising $1.25 billion in Hong Kong in April. Since the Asian financial hub tightened requirements in 2018, allowing businesses like Alibaba Group Holding Ltd. and gaming giant NetEase Inc. to list, several U.S.-traded Chinese companies have migrated to the Asian financial hub.

A Hong Kong share sale provides stateside-traded Chinese companies with a foothold that protects them from being thrown off US exchanges while also allowing them to extend their investor base closer to home. Chinese public businesses might be removed from U.S. stock exchanges if American regulators aren’t allowed to evaluate their audits, according to a measure passed in the United States.