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CATL’s Soaring Hong Kong Debut Signals Renewed Optimism for Chinese Fundraising

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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.

FCC Investigates Chinese Tech and Telecom Firms for Potential Evasion of US Restrictions

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The Federal Communications Commission (FCC) has launched an investigation into nine Chinese companies, including Huawei Technologies, ZTE, Hangzhou Hikvision, China Mobile, China Telecom, and others, to determine whether they are attempting to circumvent U.S. restrictions. These companies are currently listed on the FCC’s “Covered List,” which designates certain communications equipment and services as national security threats.

FCC Chair Brendan Carr stated that the companies may still be operating in the U.S. due to their belief that the FCC’s restrictions do not prohibit certain types of operations. Other companies under scrutiny include Hytera Communications, Dahua Technology, Pacifica Networks/ComNet, and China Unicom (Americas). This investigation is the latest move in a broader U.S. effort to combat perceived national security risks posed by Chinese telecom and technology firms.

The FCC has already barred these companies from providing telecommunications services in the U.S. due to national security concerns. However, Carr expressed concerns that some of the firms may be continuing business in America through private or “unregulated” channels. The FCC is investigating whether these companies are evading the restrictions and is taking steps to close any potential loopholes.

The agency has sent Letters of Inquiry and at least one subpoena to the companies, seeking detailed information about their ongoing activities in the U.S. and any potential assistance from other companies aiding their operations. Last year, the FCC also took steps to enhance the security of the Border Gateway Protocol (BGP) after U.S. agencies accused China Telecom of exploiting BGP vulnerabilities to misroute U.S. internet traffic.

Chinese Firms Control Around 75% of Indonesian Nickel Refining Capacity, Report Finds

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A report from C4ADS, a global security nonprofit based in Washington, has revealed that Chinese companies control approximately 75% of Indonesia’s nickel refining capacity, raising concerns about supply chain control and environmental risks. As of 2023, Indonesia’s refining capacity, which totals 8 million metric tons, is distributed across 33 companies. However, shareholder overlap shows that Chinese firms effectively control about three-quarters of the smelting capacity.

The report highlights that, while Indonesia aims to use its nickel industry as a key driver for economic growth, the substantial foreign influence could limit the country’s ability to fully control and shape the industry for its own benefit. The dominance of Chinese-controlled nickel production is also seen as a competitive disadvantage for U.S. and European automakers, especially in the growing electric vehicle (EV) market. Nickel, a key component in EV batteries, is crucial for the development of green technologies, but increasing restrictions on trade with China could affect access to this vital resource.

An Indonesian official noted last year that Chinese companies were seeking partnerships with Indonesian and South Korean firms to reduce their stakes in smelters, making their products more accessible to the U.S. market. To address these concerns, President Prabowo Subianto formed a task force to develop Indonesia’s downstream mineral industry with domestic financing, aiming to reduce the perception that foreigners benefit the most from the country’s resources.

The C4ADS report pointed out that two Chinese companies, Tsingshan Holding Group and Jiangsu Delong Nickel Industry Co Ltd, were responsible for over 70% of Indonesia’s refining capacity as of 2023. These companies were among the first investors in Indonesia’s push for domestic processing of nickel ore, a move that has helped make Indonesia the world’s dominant producer of nickel.

The report also mentions safety issues tied to Chinese-owned facilities. In December 2023, two workers at a Tsingshan Stainless Steel facility in Central Sulawesi were sentenced to jail for negligence related to a fire that caused fatalities. Additionally, in early 2023, two workers died in clashes at the PT Gunbuster Nickel Industry smelter in North Morowali, owned by Jiangsu Delong Nickel Industry.

Despite these concerns, Tsingshan has been selling stakes in some of its smelters. In October 2023, the company reached a deal with Indonesian state miner Aneka Tambang to sell 30% of PT Jiu Long Metal Industry.