Chinese EV maker Xpeng Motors gets approval for Hong Kong listing

Chinese electric carmaker Xpeng Motors got approval on Wednesday to carry out an initial public offering (IPO) in Hong Kong.

The company, which was already listed in the US stock market, was aiming to raise between $1bn and $2bn.

A source close to the matter, who spoke to CNBC, said that Hong Kong Exchanges and Clearing’s listing committee had given Xpeng the green light.

Its aim was to carry out a dual primary listing, meaning that it would be subject to the rules and oversight of both US and Hong Kong regulators.

JPMorgan Chase and Bank of America were chosen as the main banks to facilitate the listing, the source said.

Xpeng was aiming to raise money to compete in an increasingly crowded electric car market in China ruled by market leader Tesla and other national companies such as Nio and Li Auto.

In May, Xpeng delivered 5,686 cars — a 483% jump year-on-year and a 10% increase versus the previous month.

As of the previous day's close, Xpeng had a market capitalisation of $32.1bn.