Fast News: Leapmotor Gains Access to Chinese Mainland Stock Buyers
The Lastest: Electric vehicle maker Zhejiang Leapmotor Technology Co. Ltd. (9863.HK) announced on Monday that its Hong Kong-listed stock is now eligible for trading under a program that lets Chinese mainlanders buy certain Hong Kong-listed stocks.
Looking Up: The opening of the stock to mainland investors should boost Leapmotor’s trading volumes, which could boost interest in buying the company’s shares.
Take Note: The stock’s trading volume has plateaued since its late September listing, and its shares have traded below the HK$48 IPO price for all but a brief period right after their debut. The company’s third quarter revenue was up five times from a year earlier, but its loss widened to 1.34 billion yuan ($192 million).
Digging Deeper: Leapmotor was established in 2015 by its founding group and defense technology company Zhejiang Dahua Technology (002236.SZ). The company has launched four car models since 2019, targeting the mid- to high-end of China’s new energy vehicle (NEV) market. It made its first batch of vehicle deliveries to Israel in the third quarter as a first step to going global. Like its peers, the company has yet to turn a profit due to high cost of sales.
Market Reaction: Leapmotor’s stock rose 6.3% on Tuesday, extending a 14% gain the previous day.
Reporting by Chan Ka Po
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