- Xpeng says closely watching fallout with China ADRs, SEC plan
- Expects Chinese government to support global EV expansion
Electric-vehicle maker Xpeng Inc. is “following closely” the furor around U.S.-traded Chinese technology companies, although the threat of being forced to de-list from American exchanges remains “several years away,” according to President Brian Gu.
“We have been closely watching this process with China ADRs and also the accounting issue,” Gu said in an interview on Tuesday in the U.S. with Bloomberg Television. “We have the preparation already done to prepare for any eventualities.”
The comments follow a period of volatility for U.S.-traded Chinese companies in the wake of Didi Global Inc.’s decision to withdraw from U.S. stock exchanges, yielding to demands from Chinese regulators that had opposed its American listing. The U.S. Securities and Exchange Commission has also inched closer to a plan for de-listing Chinese firms it deems non-compliant with Washington’s disclosure and accounting requirements.
Unlike Didi, Xpeng already holds dual primary listings in both the U.S. and Hong Kong. This would allow the company to trade independently in Hong Kong if a delisting from U.S. exchanges were to materialize, Gu said, adding the U.S. and Chinese governments still have time to reach a compromise.
Guangzhou-based Xpeng reported a strong third quarter of deliveries last month, circumventing the ongoing global chip shortage and enjoying a strong year for China’s EV market.
Xpeng has also previously disclosed plans to sell into other international markets including Sweden, Denmark and the Netherlands. The Chinese government will be supportive of Xpeng’s efforts to expand globally, however the U.S. market could be “difficult to tackle” in the short term, Gu said.
“We need to be fully prepared before we make that decision. If you look at the auto companies that have made an effort to go in to the U.S., it took decades to make it happen,” Gu said.
Author: Edward Ludlow, Bloomberg