Chinese company masters trade conflicts with a large stock of stock exchange

Chinese company masters trade conflicts with a large stock of stock exchange

The shares of Contemporary Amperex Technology Co., Ltd. (Catl), the world's largest manufacturer of electric vehicle batteries, rose by up to 18%on the first trading day in Hong Kong, despite geopolitical uncertainties. The Catl shares opened on Tuesday at $ 296 Hong Kong ($ 37.8), which was well above the issue price of $ 263 ($ 33.6). The IPO, which brought $ 4.6 billion in the last week, recorded an increase to up to $ 311 Hong Kong Dollar during the trading day.

growth despite geopolitical tensions

This listing, the world's largest this year, illustrates how Chinese companies are driving their global expansion plans with the United States regardless of the ongoing trade conflicts. In January, Catl was placed on a black list of the US Department of Defense, which includes companies that are allegedly working with the military of China, which the company denies. Last month, the House Select Committee on China called for the US investment banks JPmorgan and Bank of America to withdraw from the accompaniment of Catl's IPO in Hong Kong. However, both held onto the deal.

vision and commitment of Catl

"The listing in Hong Kong means our deeper integration into the global capital markets," said Robin Zeng, the founder and chair of the company, during a ceremony on the stock exchange in Hong Kong. "CATL is not only a manufacturer of battery cells, but also a provider of systematic solutions and obliges to become a company for zero-CO2 technology."

internationalization and sales optimization

CATL supplies leading manufacturers of electric vehicles such as Volkswagen, Stellantis and BMW, whereby the sales achieved abroad lasted over 30 % of its sales last year, according to a stock market report on May 12. According to the Chinese state newspaper National Business Daily, the listing will provide essential capital funds for Catl's international expansion, which was restricted by limited foreign currency reserves and increasing geopolitical risks. An unspecified source of CATL explained that the Hong Kong Listing will not only build up the foreign exchange reserves and will therefore offer sufficient "ammunition stocks" to support international projects, but will also use international capital resources to improve the ability to integrate cross -border resources.

technological innovations and future strategies

Catl's debut in Hong Kong came into play after the company recently presented a new EV battery that offers a range of 320 miles with a five-minute charging time. For comparison: The technology of the competitor BYD, which challenges Tesla, reaches 250 miles in a similar charging time. In 2024, CATL kept the title of the largest supplier of electric vehicle batteries with a share of 38 % in the global market, according to SNE Research, a market research and consulting company. At the end of last year, Catl's batteries were used in every third electric vehicle worldwide, which corresponds to around 17 million vehicles.

extension and strategic partnerships

This is the second listing for the company in the province of Fujian in the southeast of China. In 2022 it took $ 6.7 billion in a IPO in Shenzhen. Catl announced his intention to write down in Hong Kong last December to broaden the global presence of the company, among other things by expansion of his facilities in Hungary. For the last year, CATL ran 13 batteries worldwide, including in China, Germany and Hungary. The company also works on a joint venture in Spain with Stellantis, the owner of Fiat and Chrysler, to build a battery plant and on a separate battery project in Indonesia.

Effects of the trade tariffs and the future outlook

Although the USA and China temporarily withdraw their high tariffs, the tariffs and auto parts introduced by President Donald Trump continue to exist. In the report, Catl said that there can be no prediction of future customs policies or their possible effects. The turnover of products that are exported directly from China to the USA has been relatively low in recent years. "Customs policies continue to develop quickly. In this phase, it is difficult to precisely assess their effects on our business. We will observe the developments closely," said the company in the report of May 12th.