CATL's Hong Kong IPO Ignites Global Investor Interest Amidst Trade Tensions

Shares in Contemporary Amperex Technology Co. Ltd. (CATL), the world's largest maker of batteries for electric vehicles, surged 17% on Tuesday during its Hong Kong market debut. The company successfully raised USD 4.6 billion, marking the world's largest initial public offering this year.

The enthusiastic reception from international investors suggests that, despite ongoing trade tensions between Beijing and Washington, there remains strong interest in leading Chinese manufacturers. CATL, which initially offered more than 135 million shares at the maximum price of 263 Hong Kong dollars each, saw its shares increase to 296 Hong Kong dollars shortly after trading began.

Despite pressure from the US, including its addition to a list of companies allegedly linked to China's military, CATL continues to expand. It plans to use proceeds from the IPO to build a factory in Hungary, aligning with its goal to support the global zero-carbon economy.

(With inputs from agencies.)