Home Business Chinese electric car start-up Xpeng gets $2 billion in credit from state-owned...

Chinese electric car start-up Xpeng gets $2 billion in credit from state-owned banks

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Chinese electric car start-up Xpeng gets  billion in credit from state-owned banks

Xpeng CEO He Xiaopeng stands subsequent to the corporate’s P7 electrical sedan as he addresses media on the 2020 Beijing auto present.

Evelyn Cheng | CNBC

In July 2020, native branches for 4 of the “huge 5” banks prolonged 10.4 billion yuan in credit score to Nio for the start-up’s China operations based mostly within the metropolis of Hefei close to Shanghai. Members on this deal included China Development Financial institution, Industrial and Business Financial institution of China, Financial institution of China and Agricultural Financial institution of China, based on an announcement from Nio.

In China’s state-dominated system, the banks want to lend to state-owned enterprises. That makes it tough for privately owned firms to get financing, until they will persuade the state-owned banks of their capability to repay loans.

Xpeng’s credit score line announcement comes after the corporate raised greater than $4 billion final 12 months in its preliminary public providing on the New York Inventory Trade in August and a follow-on providing in December.

Shares have soared greater than 195% because the IPO.

The place is the cash going?

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