Chinese EV battery giant CATL surged 16.4% on its Hong Kong trading debut, raising $4.6 billion in the world’s largest listing of 2025 so far, and signaling strong international investor appetite for Chinese equities. The successful listing has significantly boosted expectations for other Chinese companies seeking to raise capital in Hong Kong.
CATL shares, listed at HK$263, closed at HK$306.20 on Tuesday, outperforming the Hang Seng Index’s 1.5% rise. At peak trading, the stock hit HK$311.40. The offering was met with overwhelming demand, with the retail tranche oversubscribed by 151 times and the institutional tranche by over 15 times.
This robust debut came despite global market uncertainties, a slowing Chinese economy, and CATL’s inclusion earlier this year on a U.S. Department of Defense list over alleged military ties — a claim CATL has refuted in its prospectus, noting it was cooperating with the U.S. authorities to address the “false designation.”
Strong interest from global investors — including Americans with offshore accounts — underscores growing confidence in Chinese companies, even amid ongoing U.S.-China trade tensions. CATL’s listing gained additional momentum as it coincided with a 90-day U.S.-China trade truce announced on May 12, the same day the company began bookbuilding.
The company, which holds a 38% global market share in EV batteries, plans to use much of the funds to build a major battery factory in Hungary. This facility will support European automakers such as BMW, Stellantis, and Volkswagen as part of CATL’s international expansion.
The deal brought Hong Kong’s total equity fundraising for 2025 to $7.73 billion, far surpassing the $1.05 billion raised by this time last year. According to Bonnie Chan, CEO of Hong Kong Exchanges and Clearing, over 40 mainland-listed A-share firms are considering Hong Kong listings, citing access to offshore capital for global expansion.
CICC, JPMorgan, Bank of America, and China Securities International sponsored the offering, which could grow to $5.3 billion if the green shoe option is fully exercised — making it the largest Hong Kong IPO since Kuaishou’s $6.2 billion debut in 2021.