XPeng (9868.HK) fell 2% in early Hong Kong trading to HK$46.880.

The decline followed China's State Administration for Market Regulation order for XPeng to recall nearly 265,000 vehicles — G6, P7+ and X9 models — effective Aug. 22, over an interior emergency door handle that is difficult to identify due to its color blending with surrounding trim. Tesla, Xiaomi and seven other automakers were swept into a broader recall covering more than 7 million vehicles for similar door-handle safety concerns, marking China's largest auto recall to date.

Investors are also watching for XPeng's second-quarter earnings report due later today. Morgan Stanley maintains an Overweight rating with a HK$96 target price, while analysts project quarterly revenue of approximately $3.02 billion. The stock gained 3.2% last week, outperforming the Hang Seng Index, bolstered by record overseas deliveries of more than 9,700 units in July — up 223% year on year.