David Webb Warns About CATL's Low Free Float in Hong Kong
Contemporary Amperex Technology Co. Ltd. 's recent Hong Kong stock offering, the world's largest listing this year, prompted a local activist investor to warn about the concentration of its shareholdings.
Hong Kong only accounts for only 3.4% of all of the Chinese battery giant's shares as they're also listed in Shenzhen. Almost half of the ones in Hong Kong, or 77.46 million shares, are locked up from being sold until Nov. 19, leaving only a proportionally small number available as 'real free float,' David Webb said in his website.
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'The Chinese government reviews export license applications for dual-use items in accordance with laws and regulations, and for applications that meet the requirements, China will grant approval to promote and facilitate compliant trade,' spokesperson He Yongqian said. The strict licensing system has significantly disrupted the global supplies of these materials and triggered production turmoil across industries in America and Europe, raising alarms among officials and businesses alike. A survey of member companies conducted by the American Chamber of Commerce in China late week found that, among those affected by rare earth export controls, 75% say their stock would run out within three months. CNN's Kit Maher contributed to reporting.
