Mainland enterprises accelerate global expansion through Hong Kong IPOs

An increasing number of Chinese mainland enterprises are leveraging Hong Kong initial public offerings (IPOs) to fuel their global expansion, with the financial hub serving as a vital gateway to overseas capital and markets, according to industry experts.

Chinese electric vehicle (EV) battery maker Contemporary Amperex Technology (CATL) on May 20 listed on the Hong Kong Stock Exchange.

CATL's Hong Kong listing attracted a diverse range of investors from 15 countries and regions, including sovereign wealth funds, industrial investors, and long-term institutional investors. The listing process was completed in just 128 days.

CATL announced allocation results showing that, before the exercise of the overallotment option, the Hong Kong public offering was oversubscribed by about 150.2 times, raising a total of approximately 35.66 billion HK dollars (4.55 billion U.S. dollars), with net proceeds of 35.33 billion HK dollars after deducting listing expenses.

"We have numerous partners, suppliers, and customers overseas. A Hong Kong listing would significantly enhance our company's transparency and strengthen global understanding of our operations," said Wang Hongbo, Chief Investment Officer of CATL.

For mainland companies, a Hong Kong listing provides not only continuous financing channels but also significantly boosts international visibility and influence, facilitating partnerships with global firms.

"A group of globally competitive mainland enterprises is accelerating internationalization through Hong Kong's capital market. Market observations show that some high-quality H-shares now command higher valuations than their A-share counterparts, reflecting international investors' strong recognition of these companies' growth prospects," said Ronald Wan, a member of the Hong Kong Securities and Investment Institute.

Data shows the Hang Seng Index and Hang Seng Technology Index both rose over 15 percent this year, ranking among the world's top performers. The average daily turnover of Hong Kong stocks increased 37 percent year on year, reflecting strong market activity.

"Innovative industries provide excellent global investment opportunities. During my recent trips to Europe, the United States, and the Middle East, I observed strong interest from overseas investors in companies applying for Hong Kong listings," said Bonnie Chan, CEO of Hong Kong Exchanges.

Mainland enterprises accelerate global expansion through Hong Kong IPOs

Mainland enterprises accelerate global expansion through Hong Kong IPOs

China's Minister of Commerce Wang Wentao outlined the key priorities of the 32nd Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade Meeting, which opened on Friday in Suzhou, East China's Jiangsu province.

In an interview with CGTN ahead of the two-day meeting, Wang said free trade, digital cooperation and green economy are high on the agenda of the meeting.

"The key areas include advancing regional economic integration and the Free Trade Area of the Asia-Pacific, supporting the World Trade Organization (WTO) in strengthening digital cooperation and developing green economy. At present, the international situation is marked by intertwined turbulence and chaos, with intensified geopolitical instability. The rise of unilateralism and protectionism poses serious challenges to the international economic and trade order, disrupting global and Asia-Pacific development. Against this backdrop, all parties have higher expectations for this trade ministers' meeting, hoping that it can build consensus and deliver outcomes," Wang said.

This year marks China's third time hosting the APEC meetings and the 35th anniversary of its membership.

By 2025, China had become the largest trading partner of 13 APEC economies. Trade between China and APEC economies reached 3.7 trillion U.S. dollars, accounting for 57.8 percent of China's total foreign trade.

China has signed 24 free trade agreements or economic and trade arrangements with 31 countries and regions, including 15 APEC economies. In recent years, China has also completed upgrades of free trade agreements with APEC economies such as Singapore and Peru.

The minister said that China has always been a firm supporter and an important contributor to APEC.

"We have actively shared our vast market and development opportunities with all parties. China's door to the world will only open wider and wider. Facing the common challenges, China will continue to fulfill its responsibilities as a major country, further deepen reform, expand high-standard opening-up, and continue to provide new opportunities for the Asia-Pacific region and the world with its new achievements in Chinese modernization," the minister said.

China's Commerce Minister outlines priorities for 32nd APEC trade ministers' meeting