NIO, Li Auto and Xpeng Motors have a combined market capitalization of $50 billion, while Tesla has a market capitalization of $450 billion, meaning the three Chinese electric car companies have room to rise, according to CICC, a Chinese investment bank.
Wang Sheng, a member of CICC's management committee and head of investment banking, expressed this view in a speech at the China Entrepreneurs Forum held today in Qingdao.
Chinese investment bank CICC raises its NIO target price again, as it sees three benefits of BaaS
Wang Sheng said, because of the Covid-19 epidemic, the world is implementing loose monetary policy, especially the United States-led developed countries to implement low interest rates, zero interest rates, or even negative interest rates, pushing US stock indexes to record highs.
Wang Sheng said Li Auto went public last month, Xpeng went public this week, and CICC helped NIO refinance yesterday, and all three companies are now worth more than $10 billion.
After NIO and Li Auto, Alibaba-backed EV maker Xpeng goes public in US
They have a combined market capitalization of about $50 billion, but that's not a big number for investors. Tesla's market capitalization is $450 billion, so they still have room.
According to Wang Sheng, more than 200 companies have gone public in China so far this year, raising about 300 billion yuan in total. This year, it is expected that more than 500 companies will be listed, and the amount of financing will be more than 600 billion yuan, a record high.
In addition, many companies will go public overseas, so the cumulative amount of financing by these companies may exceed RMB 1 trillion yuan, and the number of listed companies will exceed 800.
More on Tech Industry
