Shares of CATL debut in Hong Kong on May 20, 2025.
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Shares of the world’s largest battery manufacturer Contemporary Amperex Technology rose over 18% in their Hong Kong trading debut on Tuesday, as investors bet on the company’s ability to ride the boom in electronic vehicles.
Shares were last trading at 308 Hong Kong dollars apiece on the Hong Kong stock exchange, compared with the initial public offering price of HK$263 dollars per share.
CATL IPO raised HK$35.7 billion ($4.6 billion) according to a company filing, reportedly making it the largest global listing in 2025. CATL shares, which had opened lower on mainland China’s Shenzhen stock exchange, reversed course to rise 1.5% to 264 Chinese yuan.
“I think that as the H [Hong Kong] shares continue to perform strongly, that will pull up the A [mainland China] shares,” Neil Beveridge, senior research analyst at Bernstein, told CNBC’s “The China Connection.”
“For the H shares to be trading above the A shares just shows how exceptional the demand is for this company, particularly from global investors,” he added.
CATL said in its Hong Kong filing that 90% of the funds raised will go toward building its upcoming factory in Hungary, aimed at supplying batteries to European automotive clients including Stellantis, BMW and Volkswagen.
“Europe is an exceptionally important market for CATL,” said Beveridge, adding that the company’s growth in China was going to slow over the coming years due to already high sales penetration. “Europe’s only at about 20-25% [sales] penetration, so there’s still a lot of growth there to come,” he added.
The company’s push into Europe coincided with global expansions from leading Chinese EV makers such as BYD. These efforts also come amid increased scrutiny from the U.S. and EU, which placed punitive tariffs on EVs made in China last year, citing unfair trade practices.
CATL found itself in the crosshairs of U.S.-China trade earlier this year, with the Pentagon putting it on a watchlist in January over suspected links to China’s military — allegations the company has rejected.
According to Bill Russo, founder and CEO of investment advisory firm Automobility, the watchlist designation, coupled with Trump’s latest tariffs on China, may complicate the company’s U.S.-related business.
However, the impact on its global ambitions will likely be limited unless broader multilateral restrictions follow, as CATL’s core strategy remains focused on markets such as Europe and emerging regions, he said.
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In March, CATL posted a 9.7% drop in its 2024 annual revenue, hit by intense competition in China’s electric-vehicle market that pressured the world’s top battery producer. Still, the company’s net profit went up by 15% year over year.
Demand for electric vehicles in China, a critical market for CATL, gained momentum last year on the back of a combination of subsidies and consumer purchase incentives. EV sales in China surged to 11 million in 2024 — a 40% increase compared to the previous year, data from U.K. research firm Rho Motion showed.
“We’re a big believer and investor in CATL in our global EV strategy. It’s just phenomenal, it’s a ‘must own company,’ in my opinion, along with BYD for investors in the space,” said Brendan Ahern, chief investment officer at KraneShares.
Bank of America, China International Capital Corporation, Goldman Sachs, Morgan Stanely, JPMorgan Chase were the joint lead mangers for the Hong Kong offering.
Speaking on CNBC’s Squawk Box Asia on Tuesday, Andy Maynard, managing director and head of equities at China Renaissance, said that the CATL’s IPO shows that investors still look to China to find quality plays despite recent trade tensions between Beijing and Washington.
Correction: This story was revised to accurately reflect the jump in shares at market open.
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