The Return of Chinese Concept Stocks: Motivations, Paths and Economic Impacts— Based on Li Auto and XPeng

Against the backdrop of intensifying competition in the global capital markets and ongoing reforms in China’s capital markets, the return of Chinese-listed companies to domestic markets has become a critical strategic decision for new energy vehicle (NEV) companies. This study examines Li Auto and Xpeng Motors, employing case analysis and event study methods to explore their returns’ motivations, paths, and economic impacts. The findings reveal that the primary motivations for Chinese-listed companies to return include tightening external regulatory environments and their own financing needs. Among these companies, Xpeng Motors is more sensitive to regulatory risks. In terms of path selection, both companies adopted a dual-listing model. However, Li Auto demonstrated greater stability in terms of market response, while Xpeng Motors exhibited higher market volatility. Regarding long-term performance, the two companies showed divergent outcomes. Li Auto achieved a high excess return (CAR of 0.8605) in 2023, while Xpeng Motors performed poorly in 2022 (CAR of - 1.0455). Additionally, both companies benefited from policy support. These findings provide empirical references for new energy vehicle companies when selecting capital market pathways. They suggest that companies should combine policy guidance with market conditions to formulate return strategies that achieve sustainable development goals.