The Chinese IPO market saw a stark slowdown in 2024 as the securities regulator increased the red tape around listing. This, combined with the Hong Kong Exchange (HKEx) recently easing rules for Chinese companies to hold dual listings there, has led many Chinese players to look to the market to raise funds. This is notable for companies operating within the electric vehicle (EV) and battery space.
Which EV and battery players are looking to list on the HKEx?
Chinese companies are set to raise billions on the HKEx in the next 18 months. Already, many notable EV and battery players have listed there seeking funds for expansion. CALB, the world’s fourth largest battery maker in 2024, listed in Hong Kong in 2022 raising USD1.3 billion, choosing the exchange as its primary listing location. Similarly, both REPT Battero and Horizon Robotics listed there as primary locations raising USD272 million and USD696 million, respectively in 2023 and 2024.
With many companies successfully listed there, many more companies are looking to the world city to raise funds. Most notably CATL submitted a prospectus at the start of 2025 aiming to list in the next 18 months while the likes of Hozon Motors, Zenergy, Shuaendeng Group all have prospectuses pending.
Elsewhere, well known players such as Chery, Seres, GAC Aion, CNGR, Chengxin Lithium and StarCharge are all rumoured to be considering IPOs on the HKEx.
What do Chinese companies gain from listing in Hong Kong?
As Chinese players increasingly look to globalise their operations and consumer bases, a Hong Kong listing offers a stepping stone to achieve this.
Hong Kong serves as a gateway for Chinese companies to attract global investors, providing easier access to foreign capital.
Previously, Chinese players had looked to the US to raise funds however geopolitical tensions have discouraged companies from listing in the US. Both US and China regulations have helped crack down on this. As a result, players have looked to Hong Kong for funding.
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Impacts on the EV & battery industry
While the funding environment in Europe and North America becomes more constrained as policy shifts, and the domestic Chinese market also faces issues, Hong Kong may act as a vital source of capital for Chinese players. Securing capital will help Chinese players expand globally and cement dominant positions in global supply chains.
More information
For more information about energy transition financial markets see our monthly report “Energy Transition Capital Monthly” or see our research.
