Recently, to improve and standardize cross-border capital management for domestic enterprises' overseas direct listings and enhance the facilitation of cross-border financing, the People's Bank of China and the State Administration of Foreign Exchange drafted the "Notice on Issues Concerning Capital Management for Overseas Listings of Domestic Enterprises (Draft for Comment)." The notice comprises 26 articles, with key contents including: unifying RMB and foreign currency management policies; providing greater flexibility and convenience for the domestic use of raised funds and foreign exchange risk management; simplifying administrative procedures and relaxing registration timeline requirements; and further standardizing the management of raised funds.
Multiple institutions analyzed that this policy, through reforms in capital management flexibility, process simplification, and compliance assurance, will remove policy barriers for domestic enterprises' overseas listings, potentially accelerating the rapid expansion of the "A+H" model and offering crucial support for corporate globalization strategies.
Media data show that in 2024, 70 companies listed on the Hong Kong stock market via IPOs, among which three A-share firms—Midea Group, SF Holding, and Lopal—successfully achieved "A+H" listings.
With favorable policies introduced, the "A+H" company roster has expanded significantly this year. Following Jinhong Co.'s listing on the Hong Kong Stock Exchange's main board on May 27, five A-share companies have successfully listed on the HKEX this year, including Chifeng Gold, Junda Co., Hengrui Medicine, and CATL, marking a recent high.
Among them, global power battery giant CATL (A-share: 300750; H-share: 03750.HK) completed the entire H-share listing process in just 100 days, from submitting its application on February 11 to listing on May 20, setting a record for the fastest overseas listing by a Chinese company.
Notably, CATL's Hong Kong listing is also one of the largest IPO projects by market size in recent years, with a total of 135 million shares offered globally pre-Greenshoe at an issue price of HKD 263 per share.
On May 19, CATL announced that the total proceeds from its global offering amounted to HKD 35.657 billion. On May 20, the company exercised its over-allotment option, increasing its Hong Kong listing proceeds to HKD 41 billion, making it the world's largest IPO fundraising case this year.
CATL founder, chairman, and CEO Yuqun Zeng stated, "The Hong Kong listing signifies the company's deeper integration into global capital markets and marks a new starting point for advancing the global zero-carbon economy."
Against the backdrop of complex geopolitics and volatile trade environments, coupled with the demonstration effect of top-tier enterprises like CATL, more A-share publicly listed firms may pursue secondary listings in Hong Kong.
On May 25, Hong Kong Special Administrative Region Financial Secretary Paul Chan Mo-po noted in a statement that this year, Hong Kong's IPO fundraising has exceeded HKD 76 billion, a YoY increase of over sevenfold, nearing 90% of last year's total IPO proceeds.
Earlier, Chen Yiting, CEO of Hong Kong Exchanges and Clearing Limited (HKEX), also revealed during CATL's listing ceremony that she was highly satisfied with the current pipeline of listing applications at HKEX. From the beginning of the year to date, the group has received nearly 100 new listing applications, with approximately 150 currently under review.
According to incomplete statistics from Battery Network, in the new energy battery sector, companies such as Shenzhen Senior Technology Material, Narada Power, CNGR, Chengxin Lithium, GEM, Lead Intelligent Equipment, Junda Shares, Lens Technology, Seres, Sany Heavy Industry, Joyson Electronics, Sanhua Intelligent Controls, and JA Solar Technology are queuing up for "A+H" listings.
Meanwhile, the A-share market's "strict scrutiny of listing access" has also spurred demand for mainland companies to pursue their first IPOs in Hong Kong. Among them, several companies that failed in their A-share IPO attempts have turned to the Hong Kong market.
Battery Network's research indicates that currently, Hithium, Shuangdeng Group, Guofu Hydrogen Energy, Zhida Technology, Zhongding Intelligent, Jinsheng New Energy, Sig New Energy, Guoxia Technology, Zhongrun Solar, and Chery Automobile, among other companies in the new energy battery industry chain, are preparing for Hong Kong IPO listings.
Industry insiders pointed out that the trend of A-share new energy battery companies flocking to Hong Kong for secondary listings, and mainland companies choosing Hong Kong H-shares for their first IPOs, is essentially a resonance between globalization strategies and capital needs. This approach not only alleviates the tightening domestic financing environment and competitive pressures but also introduces international long-term capital to support overseas expansion. It further strengthens China's new energy battery industry chain and capital chain, enhances resilience against trade risks, and accelerates global deployment.
