Electric-car maker Li Auto Inc. kicked off a near-$2 billion stock offering in Hong Kong, joining a string of U.S.-listed Chinese companies in tapping investors closer to home.
The Nasdaq-listed maker of electric vehicles is pushing ahead with the stock sale despite a recent selloff in offshore-listed Chinese stocks, which was fueled by a raft of official actions against sectors like tutoring, ride-hailing, food-delivery and property.
Many other U.S.-traded Chinese companies, including Alibaba Group Holding Ltd. and JD.com Inc., have listed in Hong Kong in recent years. As well as raising funds, they have sought to access investors who are more familiar with businesses from China, and to hedge against potentially being kicked off U.S. markets.
But unlike most of those companies, Li Auto is following fellow EV maker XPeng Inc. in obtaining what is known as a dual primary listing rather than a secondary one. That means it has to follow Hong Kong disclosure and corporate-governance standards more closely.
Choosing this route allows Li Auto to list in Hong Kong earlier after going public in the U.S. It will also enable Li Auto shares to be bought and sold by investors in mainland China via a trading link.
