Mainland China-listed firms are flocking to Hong Kong for new share offerings, driven by attractive valuations, strong liquidity and supportive policies, with Contemporary Amperex Technology’s (CATL) deal poised to be the biggest of the year.
Shenzhen-listed CATL, the world’s largest producer of batteries for electric vehicles, is gauging investor interest for its estimated US$5 billion share float this week after receiving approval from the Hong Kong stock exchange’s listing committee on Tuesday. The share sale would be the city’s largest since Kuaishou Technology raised US$6.2 billion from its initial public offering (IPO) in January 2021.
CATL is among the 30 A-share companies that have submitted applications for H-share offerings in Hong Kong so far this year, surpassing last year’s total of 16, according to the latest data available from the Hong Kong stock exchange and industry research. Such applications averaged five a year from 2016 to 2023, according to a CGS International note in March.
A total of 46 A-share companies planned to list in Hong Kong this year, state media outlet Securities Daily reported on Tuesday.
Wu Qing, chairman of the China Securities Regulatory Commission, said the overseas listing process would be further simplified, which would strengthen Hong Kong’s status as an international financial centre. Photo: SCIO
On Wednesday, Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), said the market regulator would streamline the filing mechanism, process and related elements for overseas listings to further improve the quality and efficiency, strengthening Hong Kong’s status as an international financial centre.
The regulatory support is expected to further fuel the A-to-H listing trend, adding to the CSRC’s measures unveiled in April 2024 to support IPOs of leading Chinese companies in Hong Kong, and the Hong Kong bourse operator’s announcement in October that it would expedite share sales by mainland-traded Chinese companies.
