China's Tesla rival Li Auto makes HK debut, considers A-shares listing

Chinese electric vehicle (EV) maker Li Auto, a rival to the U.S. EV titan Tesla, debuted in Hong Kong 

On Thursday, the Chinese electric vehicle (EV) maker Li Auto, a rival to the U.S. EV titan Tesla, debuted in Hong Kong with shares trading flat, while the company also said it is considering an A-shares listing.

The listing makes it the latest Chinese firm that has already traded on Wall Street to seek exposure in Hong Kong, following its Chinese rival XPeng's initial public offering (IPO) last month.

The company raised $1.52 billion by pricing its stock at 118 Hong Kong dollars (about $98). In early trade, its shares slipped to 116.80 Hong Kong dollars, down from its IPO price. The debut followed a 1.1-percent rise in its shares in New York on Wednesday.

Li Auto is internally discussing the possibility of issuing A-shares in the Chinese mainland, according to Shen Yanan, the company's president.

The EV maker plans to set up a new factory in Beijing to expand manufacturing capacity, Shen said.

According to its prospectus, it also intends to devote nearly half of its net profits to research and development, including "ultra-fast charging methods."

China is the world's largest automobile market, with new electric vehicles expected to account for 25% of all vehicle sales by 2025.