
Chinese battery giant raises billions in this year's biggest listing
China's Contemporary Amperex Technology Co. Ltd. (CATL), the world's biggest electric vehicle battery maker, saw its shares soar on the first trading day in Hong Kong after the company made its debut there on Tuesday.
The secondary listing of CATL's shares raised at least $4.6 billion (€4.08bn) for the company, which already has its A-shares traded in mainland China, in Shenzhen.
The solid reception for CATL in Hong Kong suggests there is still an appetite among international investors for leading Chinese manufacturers despite trade tensions between Beijing and Washington.
It sold more than 135 million shares at their maximum offer price, HK$263 (€29.8) each. Its shares rose after they started trading at HK$296 (€33.56), 12.5% higher than their offer price. They were up about 17% by mid-afternoon local time.
CATL held a nearly 38% global market share for EV batteries in 2024, its listing documents showed. It supplies automakers like Tesla, Volkswagen, BMW, Mercedes-Benz, Ford, Toyota and Honda.
The company has faced pressure from the US In January, the US Defense Department added it to a list of companies it says have ties to China's military, an accusation that CATL denied. It called the inclusion a "mistake."
In April, John Moolenaar, chairperson of the US House Select Committee on China, wrote to the CEOs of JPMorgan Chase & Co. and Bank of America urging them to withdraw from their work on CATL's IPO. However, the two banks remained involved.
In the US, Ford Motor Co. is licensing technology from CATL to build batteries, but the plan faces resistance from some Republican lawmakers, who have expressed concern that the Chinese company could benefit from US tax dollars.
As a result of the US blacklist, the share offering excluded onshore US investors. However, many large US institutional investors have offshore accounts that allowed them to participate. The the new listing gives global investors easier access to the company's shares than before.
CATL said in a press release: 'This offering attracted a diverse range of investors from 15 countries and regions globally, including sovereign wealth funds, industrial capital, long-term institutions, insurance capital, and multi-strategy funds.'
The company said it plans to use most of the money raised to build its factories in Germany and in Hungary, to localise production in Europe, as part of a strategy to reduce the impact of import tariffs and gain higher market share in Europe.
CATL recorded a profit of CN¥ 55.3bn (€6.8bn) in 2024, up 16.8% from 2023. Investors in the US expect the company to generate an operating profit of about $10.6bn (€9.4bn), according to the Wall Street Journal, citing FactSet.
Government officials, including Hong Kong's Financial Secretary Paul Chan, attended its listing ceremony in the city's vibrant business district, Central, on Tuesday. The company's chairman Robin Zeng said his business is committed to becoming a zero-carbon technology company.
"Listing in Hong Kong means we are more broadly integrated into the global capital markets, and it's also a new starting point for us to promote the global zero-carbon economy," Zeng said.
The Taiwanese president said on Tuesday that trade tensions between the United States and Taiwan were merely 'frictions between friends', expressing optimism as tariff negotiations continue with Washington.
US President Donald Trump imposed 32% tariffs on all imports from Taiwan as part of sweeping duties levied against all US trading partners last month.
The tariffs on Taiwanese goods were subsequently lowered to 10% for 90 days to allow for trade negotiations. Officials from both sides held a first round of talks last month, to be followed by another in the coming weeks.
In a speech marking his first year as president and focusing on Taiwan's strategies to defuse the effects of US tariffs and military threats from China, Lai Ching-te struck an accommodating tone despite the tariff pressure.
The US and Taiwan have long 'co-operated and have also encouraged each other to grow,' he said. 'There are bound to be frictions between friends, but they can eventually be reconciled.'
'Even if there are differences of opinion, as long as there is a foundation of trust and sincere dialogue, they can understand each other better and deepen their friendship,' he added.
The US has traditionally been Taiwan's strongest unofficial ally in the face of military threats by China, which considers the self-ruled island its own territory, to be retaken by force if necessary. Washington is bound by its own laws to provide Taipei with the means to defend itself.
Lai said Taiwan would continue to strengthen its national defence capabilities, both through foreign military procurement and domestic arms development, and stand 'shoulder to shoulder' with its allies 'to exert deterrent power.'
'We will prepare adequately to avoid war and achieve the goal of peace,' he said.
He kept open the possibility of talks with Beijing, saying that 'Taiwan is very willing to engage in exchanges and cooperation with China' as long as there is mutual respect and dignity.
Taiwan's economy is supported by massive semiconductor firms that supply microchips globally as well as other electronics, advanced manufacturing and green tech makers.
Lai said he would continue to encourage foreign investment in Taiwan, citing Monday's announcement by American technology company Nvidia about opening a new office in northern Taipei.
Nvidia's Taiwan-born CEO Jensen Huang also announced his company would build an artificial intelligence supercomputer on the island in partnership with TSMC, tech firm Foxconn and the Taiwanese government.
He also backed increased investments by Taiwanese firms in the US.
In March, the island's largest chipmaker, TSMC, responded to Trump's tariff threats by pledging a new $100 billion (€88.7bn) investment in the US, in addition to earlier commitments to invest more than $65bn (€57.7bn) in three factories in Arizona, one of which began production late last year.
However, Lai's controversial proposal to completely remove tariffs on US goods 'on the basis of reciprocity,' in addition to increasing procurement of US products, triggered protests last week by Taiwanese farmers.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Euronews
26 minutes ago
- Euronews
Uzbekistan and Hungary agreed to form an enhanced strategic partnership
The US Senate has confirmed Charles Kushner, the father of President Donald Trump's son-in-law Jared Kushner, to serve as ambassador to France. The 70-year-old real estate developer, who received a presidential pardon from Trump in December 2020 over convictions for witness tampering and tax evasion, was confirmed by a 51-45 vote in the Senate on Monday. When Trump announced his desire to nominate Kushner in November, the US president called him "a tremendous business leader, philanthropist, and dealmaker." Kushner's son Jared is a former White House adviser who is married to Trump's eldest daughter, Ivanka. At his confirmation hearing on 1 May before the Senate Foreign Relations Committee, Kushner was asked about his criminal past. He was sentenced in 2005 to two years in prison after pleading guilty to 18 counts. "My misjudgement and mistake was over 20 years ago," Kushner told the hearing. "Since then, I've been pardoned by President Trump. But I don't sit here before you today and tell you I'm a perfect person. I am not a perfect person. I made a very very very serious mistake, and I paid a very heavy price for that mistake," he added. Former New Jersey governor and Republican presidential candidate Chris Christie — who brought the charges against Kushner when he was a US attorney in the early 2000s — said his case was "one of the most loathsome, disgusting crimes" he ever prosecuted. Kushner will go to France as the relationship between the two traditional allies, and between Washington and the rest of Europe, has been strained over Trump's trade policies and the US position on Russia's full-scale invasion of Ukraine. At his confirmation hearing, Kushner said he would work closely with France to "bring greater balance to our important economic relationship" and also encourage France to "invest more in its defence capabilities, as well as lead the EU to align with the US vision of increased European commitments to security." It is unclear how Kushner's appointment will be received in France. After Trump announced his nomination in November, Gérard Araud, a former French ambassador to the US, was among several people to express scepticism or criticism over the decision. "Needless to say, he has no knowledge of our country. At least he will have access to the president. We console ourselves as best we can," Araud wrote in a post on X. Senator Cory Booker, who represents Kushner's home state of New Jersey, was the lone Democrat to vote in favour on Monday. One Republican, Lisa Murkowski of Alaska, voted against it. Uzbekistan and Hungary have agreed to form an enhanced strategic partnership. The treaty was signed by Uzbek President Shavkat Mirziyoyev and Hungarian Prime Minister Viktor Orbán on Tuesday afternoon in Budapest. The two countries have also concluded agreements at ministerial level: an extradition treaty, a treaty on cooperation in disaster management and one on climate protection, and an agreement on Hungary's participation in the construction of nuclear power plants in Uzbekistan. The Central Asian country has sent a large delegation to Budapest, with the President, four ministers and several businessmen visiting the Hungarian capital. On Tuesday morning, members of the delegation held talks with Minister of National Economy Márton Nagy and Hungarian businessmen on cooperation opportunities. 'One of the very developed areas in Hungary is fishery, and we have a huge opportunity in Uzbekistan. In the past few years, we brought Hungarian companies and Hungarian genotypes of fish, but in this visit, we are developing with Hungarian companies a new program to establish more extensive and intensive projects" - the minister of agriculture of Uzbekistan, Ibrokhim Abdurakhmonov told Euronews. The Uzbek head of state, President Shavkat Mirziyoyev also held talks with the Hungarian speaker of the Parliament. At the meeting, László Kövér said that they would like to extend the strategic partnership to closer cooperation between the two parliaments. A group of 68 immigrants from Honduras and Colombia returned to their countries of origin on Monday from Texas as part of a new initiative by the Trump administration. The programme promotes the departure of people in an irregular migratory situation in what the Trump administration is calling "voluntary deportations." In early May, the US government offered a payment of $1,000 (€889) to undocumented migrants who made the choice to leave the country voluntarily. Homeland Security Secretary Kristi Noem confirmed on Monday that the first departure flight marks the beginning of the so-called "Project Homecoming" plan. According to Noem, the action is not part of the usual Immigration and Customs Enforcement (ICE) operations, but a voluntary and assisted process. In a post on his X account, Noem said, "If you are in this country illegally, deport yourself NOW and preserve your opportunity to potentially return the legal and correct way." "If you don't, you will be subject to fines, arrest, deportation and never be allowed to return," she added. Participants in the programme used a CBP Home application to formalise their departure and received the money promised to support their return. Upon arrival in both Honduras and Colombia, migrants were met with local assistance. The Hondurans were also included in the 'Hermano, Hermana, Vuelve a Casa' programme, which provides a $100 voucher (€89) for adults, including food aid and job orientation. Colombian returnees were assisted by the Colombian Institute for Family Welfare (ICBF) and the Department for Social Prosperity (DPS) — agencies in charge of facilitating social and economic reintegration. The programme is part of the new immigration policies promoted by Donald Trump since the start of his second term in office in January, with the aim of reducing irregular immigration in the country. His offer to allow migrants to depart voluntarily has been matched with highly-publicised detentions in the US and flying a couple hundred of Venezuelan migrants to a maximum security prison in El Salvador.


Fashion Network
43 minutes ago
- Fashion Network
Luxury Coach bag for $30? Deflation reshapes China's luxury market
Chinese energy sector worker Mandy Li enjoys treating herself to a luxury brand handbag from time to time. However, since her state-owned employer cut her wages by 10% and her family's property values dropped by half, she now buys only second-hand items. "I'm cutting down on large expenditures," said 28-year-old Li, while browsing at Super Zhuanzhuan, a second-hand luxury store that opened in Beijing in May. "The economy is definitely in a downturn," she added. "My family's wealth has shrunk by a lot" due to the property crisis that has affected China since 2021. As deflationary pressures intensify in the world's second-largest economy, consumer behavior continues to shift in ways that further suppress prices. Economists warn that this trend could entrench deflation and create more challenges for Chinese policymakers. Data released on Monday showed that consumer prices fell 0.1% in May compared to a year earlier. Due to oversupply and weak household demand, price wars have erupted across sectors, including autos, e-commerce, and coffee. "We still think persistent overcapacity will keep China in deflation both this year and next," Capital Economics stated in a research note. New businesses are targeting cost-conscious consumers by offering low-priced options, including 3 yuan ($0.40) breakfast menus at restaurants and supermarkets hosting flash sales four times a day. However, economists argue that these pricing battles are unsustainable. Companies that fail to compete may close, increasing unemployment and exacerbating deflation. Since the pandemic, rising price sensitivity has fueled growth in China's second-hand luxury market. According to a 2023 report by Zhiyan Consulting, the sector recorded annual growth above 20%. This growth has also led to a surge in supply, which is reflected in deeper discounts. Some new stores, including Super Zhuanzhuan, offer products at up to 90% off their original prices, far below the industry average of 30–40% in recent years. Discounts of 70% or more have also become common on major second-hand platforms such as Xianyu, Feiyu, Ponhu, and Plum. "In the current economic environment, we are seeing more existing luxury consumers shift to the second-hand market," said Lisa Zhang, an expert at Daxue Consulting, a market research and strategy firm specializing in China. "But sellers offer more discounts because of growing competition." At Super Zhuanzhuan, a green Coach Christie carryall handbag—originally sold for 3,260 yuan ($454)—now costs just 219 yuan ($30). A Givenchy G Cube necklace that once retailed for 2,200 yuan now sells for 187 yuan. "Each year, the number of sellers grows by about 20%, but the number of buyers has stayed relatively stable," said the founder of another second-hand luxury business in China, who requested anonymity to speak candidly. "The middle class—its salary has really decreased. The economy is the number one reason we're seeing these trends." He noted that while large cities like Shanghai and Beijing still support new market entrants, smaller cities lack enough demand. "I would expect most of the recently opened stores will eventually close," he said. University professor Riley Chang browsed at Super Zhuanzhuan—not to buy anything, as she has avoided big brands since the pandemic—but to assess the market if she decides to sell her possessions. She left unimpressed. "I've been to several major second-hand luxury stores in Beijing and Shanghai, and they all try to push your price as low as possible," Chang said. ($1 = 7.1833 Chinese yuan renminbi) © Thomson Reuters 2025 All rights reserved.


Euronews
2 hours ago
- Euronews
Pork, EVs, and diplomatic reset: EU-China trade fight heats up
The road to a diplomatic reset in EU-China relations is paved with escalating tit-for-tat trade measures, casting a shadow over efforts to ease long-standing disputes. On Tuesday, Chinese authorities announced a six-month extension of their anti-dumping investigation into pork imports from the EU, citing the complexity of the case as justification for the delay. Initially launched in June 2024, the probe will now run until the end of the year, targeting more than €1.75 billion in pork exports, particularly from Spain, the Netherlands, and Denmark. The announcement came as Brussels and Beijing are seeking to stabilise relations despite years of friction, exacerbated by US president's trade war against China and a shifting global order. A crucial milestone in this process will be the EU-China summit, now confirmed for the second half of July 2025 in Beijing. But China's extension of the investigation into pork imports show that the trade relationship between the EU and China is still fraught, with each side using sensitive sectors, such as electric vehicles for the EU and agriculture for China, as leverage in their negotiations. Pork is a strategically important product for both sides: China is the world's largest consumer, and EU farmers export significant quantities of offal products like ears, feet, and snouts, which are highly valued in Chinese cuisine but have little value in other markets. Pork is a strategically important product for both sides: China is the world's largest consumer, and EU farmers export significant quantities of offal products like ears, feet, and snouts, which are highly valued in Chinese cuisine but have little value in other markets. However, the pork investigation is viewed less as a genuine trade concern and more as a bargaining chip in wider trade negotiations. The pork probe is widely interpreted as China's response to the EU's recent decision to impose tariffs of up to 45% on Chinese-made electric vehicles (EVs). Brussels argued the tariffs were necessary to counteract state subsidies and prevent market distortion, as Chinese EV manufacturers rapidly increase their presence in Europe. At the time of their announcement, China sharply criticised the EU's EV tariffs as protectionist, warning of 'necessary measures' to defend national interests, signalling that Tuesday's extension of the pork probe might now be part of a broader strategic play. Key discussions on EV tariffs recently took place in Paris, where Chinese commerce minister Wang Wentao met with EU Trade Commissioner Maroš Šefčovič in talks that covered also broader concerns such as rare earth export controls and public procurement access. At the heart of the negotiations is a potential shift from punitive tariffs to a system of minimum prices for Chinese EVs. This approach aims to address the EU's concerns about unfair competition while avoiding outright trade barriers, potentially serving as a model for future high-tech trade frameworks. 'Negotiations for an agreement on a price undertaking, which would then replace the existing duties we have in place, are continuing at both technical and political level,' a European Commission spokesperson confirmed on Tuesday. This latest clash echoes earlier episodes in China-EU trade relations. Last week, the EU hit back with restrictions on Chinese medical device makers, limiting their access to public procurement contracts in response to Beijing's 'Buy China' policy, which disadvantages EU firms in Chinese markets. All these moves reflect an established pattern of reciprocal measures, with both sides targeting politically sensitive industries to gain a negotiating advantage. Another potential flashpoint is China's restriction of rare earth mineral exports, which are critical components for many EU manufacturing sectors. Though initially aimed at the United States, these restrictions have implications for Europe and are now part of a wider toolkit of Chinese leverage. The EU now hopes that these restrictions will soon be lifted and addressed the topic in Paris' talks last week. 'All we have so far is an indication from the Chinese government via a statement by the spokesperson for their Commerce Ministry that they are indeed looking at this issue and that they're going to find a way to address it,' said a European Commission spokesperson on Tuesday. 'As far as we know, nothing has been formally communicated to us in a structured way,' the spokesperson continued, adding that once the bloc receives such communication, it will need time to assess it. Amid the back-and-forth, there have also been signs of goodwill. China recently expanded market access for certain Spanish food products in an apparent signal that it remains open to negotiation. A crucial milestone in this process is the EU-China summit, now confirmed for the second half of July 2025 in Beijing. Both sides hope it will serve as a platform to recalibrate their economic ties and potentially defuse one of the most complex and consequential trade disputes of the decade. The United Kingdom is placing sanctions on far-right Israeli ministers Bezalel Smotrich and Itamar Ben-Gvir, Foreign Secretary David Lammy announced on Tuesday. Lammy said the ministers had "incited extremist violence and serious abuses of Palestinian human rights." Smotrich and Ben-Gvir will have their assets frozen and face travel bans, a move that is expected to be matched by other international allies as well. In a statement, the UK Foreign Office said they are acting "alongside partners Australia, Canada, New Zealand and Norway." Israeli Foreign Minister Gideon Saar called it an "unacceptable decision" and said the cabinet will meet next week to decide on a response. Smotrich and Ben-Gvir have repeatedly called for Israel to conquer Gaza and re-establish Jewish settlements there. Last month, Smotrich said "Gaza will be entirely destroyed" and has campaigned against allowing aid into the territory. Ben-Gvir has also called for the permanent resettlement of Palestinians from the territory. Referring to the construction of settlements in the occupied West Bank, Smotrich said in a post on X that "Britain has already tried once to prevent us from settling the cradle of our homeland, and we will not allow it to do it again. We are determined to continue building." "Extremist rhetoric advocating the forced displacement of Palestinians and the creation of new Israeli settlements is appalling and dangerous,' the statement from the UK Foreign Office said. It also said that "the rising violence and intimidation by Israeli settlers against Palestinian communities in the West Bank must stop." Settlement growth and construction in the occupied West Bank have been promoted by successive Israeli governments stretching back decades, but it has exploded under Netanyahu's far-right coalition, which has settlers in key Cabinet posts. There are now well over 100 settlements and around 500,000 Israeli settlers sprawling across the area. Rights groups argue that the settlements, illegal under international law, are a hurdle to an eventual two-state solution.