French media reported that CATL raised more than 4 billion euros in its Hong Kong IPO, with 90% of the funds to be used for Hungary, and Hong Kong officials called it a model for Chinese enterprises' international expansion. The leading electric vehicle battery company in mainland China, CATL (referred to as CATL), went public in Hong Kong this morning (on the 20th day) and raised 35.66 billion Hong Kong dollars (equivalent to about 4.06 billion euros or 4.56 billion US dollars). Financial Secretary Paul Chan attended the listing ceremony and stated that 90% of the funds raised will be used to build a factory in Hungary. CATL's listing in Hong Kong not only further enhances the liquidity of the Hong Kong stock market but also accelerates the development model of mainland enterprises using Hong Kong for fundraising to support international expansion, better completing the global capital strategic layout. CATL has been listed on Shenzhen Stock Exchange since its initial public offering, and despite being placed on the "blacklist" by the U.S. Department of Defense earlier this year, it has not hindered its steps to list again in Hong Kong, nor has it deterred market optimism about its development. On the first day of CATL's listing in Hong Kong, the opening price was 296 HKD, which was nearly 13% higher than the issue price, and later gradually climbed to 311.4 HKD. Before noon, the increase narrowed, and it closed at 307.6 HKD, with an increase of 16.96%. Secretary for Financial Services and the Treasury Paul Chan said during the listing ceremony today that this year, the excellent performance of the Hong Kong stock market and the strength of the Hong Kong dollar have created a positive atmosphere for the market, which is also beneficial to the new share market expectations, and CATL's listing highlights these positive factors even more, believing that it can further enhance the liquidity of the Hong Kong stock market and promote the optimization of market structure. He also mentioned that the current geopolitical environment is complex, and various funds are actively diversifying their allocations. Mainland and other enterprises can use Hong Kong's listing platform to accelerate their global strategic layouts. For example, 90% of CATL's fundraising will be used to build a factory in Hungary, and this "Hong Kong fundraising to support international expansion" model will be the future trend of mainland enterprises going overseas. The government and relevant institutions will continue to strive to attract more high-quality industrial enterprises to list, develop, and operate in Hong Kong. Zeng Yiqun: CATL is Laying Out for Zero-Carbon Technology CATL Chairman Zeng Yiqun, who attended the listing ceremony, said that listing in Hong Kong means the company is more widely integrated into the global capital market, and it is also a new starting point for the company to promote the global zero-carbon economy. This helps the company lay out for zero-carbon technology. He pointed out that the global transportation system is being restructured, and new energy vehicles and battery swap ecosystems are entering a phase of explosive growth. In the face of changes, CATL is promoting the development of battery swap models by taking vehicle-battery separation and battery standardization as the core, promoting the integration of transportation networks and energy networks. Earlier, when CATL announced its listing plan, it stated that 90% of the funds raised would be used to build a new battery factory in Hungary to supply European car manufacturers such as BMW, Stellantis, and Volkswagen. The cost of the first phase of construction is 2.7 billion euros, expected to begin operations this year; the second phase of construction is also planned to start this year. The largest single IPO this year in Hong Kong is beneficial for Hong Kong to climb another rung on the ladder of the global new share fundraising market. The upcoming listing of CATL in Hong Kong, which is expected to become the largest IPO globally this year, also increases the possibility of Hong Kong moving up another step in the global new share fundraising market, ranking fourth. Reuters previously reported that in March this year, Japanese company JX Advanced Metals conducted an IPO in Tokyo, raising an equivalent of 3 billion US dollars, making it the largest single IPO locally until then and pushing Tokyo Stock Exchange to rank third in global IPO rankings for the first quarter. Through its secondary listing in Hong Kong, CATL will raise 5.3 billion US dollars, far exceeding JX, becoming the largest stock issuance globally this year and the largest IPO in Hong Kong since Kuaishou Technology raised 6.2 billion US dollars in 2021. In 2024, Hong Kong ranked fourth globally in the IPO market with 71 new listings and raised 87 billion Hong Kong dollars, rising two places from the previous year; in the first quarter of 2025, Hong Kong maintained its ranking as the fourth globally with 15 IPOs and raised 17.7 billion Hong Kong dollars. According to KPMG estimates, improved market sentiment and increased market liquidity will provide a good foundation for more high-tech companies to list in Hong Kong this year; regulatory authorities' encouragement and the demand to connect with international capital markets drive the growth of "A+H" companies. Another accounting firm, Deloitte, maintained its prediction for the Hong Kong new share market in April, expecting approximately 80 new shares to be listed in Hong Kong this year, raising between 130 billion and 150 billion Hong Kong dollars. The U.S. Department of Defense updated the "1260H List" (commonly known as the blacklist) in early January, including industry giants like CATL, increasing the total number of companies on the blacklist to 134. Although the list does not involve specific sanctions, the designation serves as a warning to U.S. companies because cooperation with the listed companies may prevent them from obtaining Pentagon contracts in the future. However, CATL has stated that the Pentagon's designation is "wrong" and denies involvement in military-related activities. Source: rfi Original article: https://www.toutiao.com/article/1832637337239626/ Disclaimer: This article represents the views of the author.