CATL plans to limit the types of US investors that can participate in its Hong Kong listing. - Bloomberg

CATL plans to limit the types of US investors that can participate in its Hong Kong listing. - Bloomberg

Chinese battery giant CATL is planning to restrict the types of US investors who can participate in its upcoming Hong Kong listing. According to sources with direct knowledge of the matter, the company is considering a more controlled approach to investor participation, which may limit the involvement of certain US investors [1].

The decision comes as CATL prepares for a book-building process for its Hong Kong listing, which is expected to raise approximately $5 billion. The company is expected to offer the stock at a discount of less than 10% to its Shenzhen-listed shares, with potential cornerstone and anchor investors subscribing for around half of the shares to be sold [1].

CATL's move to limit US investor participation could be driven by various factors, including regulatory concerns and geopolitical tensions. The company has previously stated that part of the funds raised in the Hong Kong listing will be used to build a 7.3 billion-euro ($8.28 billion) battery plant in Hungary [1].

The Hong Kong stock market typically offers discounts to investors in offshore listings, with the Midea Group's Hong Kong listing in September 2024 serving as a recent example, where the shares were priced at about a 20% discount [1].

Meanwhile, Ant Group, another major Chinese fintech company, is in talks with regulators over a Hong Kong IPO for its international unit, Ant International. The group has received indications that there are no policy obstacles to the listing, and the process is being led by Zhou Zhifeng, a senior vice president and general counsel of Ant Group [2].

The move by CATL to limit US investor participation in its Hong Kong listing highlights the evolving dynamics of international capital markets and the challenges faced by Chinese companies seeking to list their shares overseas. The company's strategy is likely to be closely watched by investors and financial professionals alike.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3RF05F:0-catl-likely-to-offer-less-than-10-discount-for-5-billion-hong-kong-listing-sources-say/
[2] https://www.caixinglobal.com/2025-05-05/exclusive-ant-group-in-talks-for-international-unit-ipo-in-hong-kong-102316506.html