Didi’s $1.5bn share plunge looms over China’s electric carmaker XPeng debut
Shares in electric carmaker XPeng debuted on the Hong Kong stock exchange today, while Didi’s $1.5bn share plunge looms over the fellow Chinese tech firm.
China-based firms trading in the US have pivoted towards trading closer to home, in an attempt to ease hawkish regulators amid Beijing’s tech and security crackdown.
Nasdaq-listed XPeng, which has been hot on the tails of Tesla in China, is the latest Chinese company to list on the Hong Kong stock exchange following other big tech firms like search giant Baidu.
The carmaker rallied $1.8bn in its initial public offering (IPO) ahead of today’s float.
The IPO comes just days after Didi debuted on the US stock exchange, which turned sour yesterday when shares plummeted.
Didi co-founder and CEO, Cheng Wei, saw his net worth collapse by around $1.2bn, according to the Bloomberg Billionaires Index. While co-founder and president, Jean Liu, lost some $300m.
Regulators in China urged Didi not to list in the US over security concerns, but the tech giant went ahead with the listing regardless, according to reports.
Chinese companies have been facing increasing pressure from Beijing to list in Hong Kong, despite tightening regulations on tech-based firms like XPeng and Didi.
Two other US-listed Chinese electric car makers, Nio and Li Auto, are also eyeing a Hong Kong listing, according to Bloomberg.