Latest news with #ContemporaryAmperexTechnologyCo
Yahoo
12 hours ago
- Business
- Yahoo
IPO Fever Returns: Is Hong Kong the New Gateway to China's Tech Boom?
A fresh wave of Chinese listings is starting to breathe life into Hong Kong's equity market. IPOs have raised HK$77 billion ($9.9 billion) through Maymarking the busiest start to a year since 2021anchored by standout debuts like battery giant Contemporary Amperex Technology Co. Market participants are now eyeing what's next, with names like chipmaker Will Semiconductor and EV player Seres Group preparing to launch. While overall turnover remains muted, the renewed pipeline could gradually revive investor interest in a market that's still 25% off its 2021 highs, despite a 16% rebound so far this year. Warning! GuruFocus has detected 8 Warning Signs with HKXCF. Some investors are starting to draw comparisons to the early 2000s IPO surge that preceded a multi-year rally. Fund managers point to the outsized gains of recent entrantsMixue Group, Guming Holdings, and Bloks Group have more than doubled since listingas a sign that sentiment may be shifting. Fast-fashion heavyweight Shein is now reportedly weighing a move to Hong Kong for its long-awaited IPO, adding fuel to the optimism. Yang Ruyi, of Shanghai Prospect Investment Management, said these listings are fundamentally reshaping the DNA of the market, suggesting Hong Kong is evolving beyond a simple offshore access point into a pricing hub for China's next-gen economy. That said, not everyone's calling a comeback just yet. Liquidity remains a key watchpoint, and the risk of IPOs siphoning attention away from existing names could dampen broader momentum. Still, structural catalysts are emerging. The Hang Seng Index now trades at 10.3x forward earningsabove its three-year averageand Hong Kong Exchanges & Clearing (HKXCF) is up 36% YTD. Inclusion of new listings in global benchmarks like MSCI could be a meaningful trigger for inflows. For investors betting on a longer-term China tech and consumer story, this IPO cycle may be the market's next proving ground. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
19 hours ago
- Automotive
- The Star
Chinese listing spree sparks revival hopes in Hong Kong stocks
HONG KONG: A wave of listings by Chinese companies is expected to reinvigorate trading activity in Hong Kong, with optimism growing that a robust pipeline of debuts will drive the broader stock market higher. First-time share sales in Hong Kong have raised HK$77bil this year through May, the most for the period since 2021, buoyed by a blockbuster offering by battery giant Contemporary Amperex Technology Co (CATL). The boom looks set to continue as companies that represent China's industrial ambitions and rising technological capabilities – such chipmaker Will Semiconductor Co and luxury carmaker Seres Group Co – prepare to debut on the Hong Kong exchange. While there is yet to be a meaningful pickup in turnover, the listings are a welcome development for a market that had been bogged down in recent years by low liquidity and a dearth of prominent new entrants to attract global capital. The Hang Seng Index remains 25% below its 2021 peak despite a 16% gain this year. 'The fundraising rush will be a boon for liquidity and finally make Hong Kong 'China's Nasdaq,' more so than any of the onshore growth boards, given the quality of the listings,' said Chen Da, founder of Dante Research. The arrival of high-profile Chinese companies, and the trading activity that brings, may revitalise stocks that had fallen into obscurity due to low turnover in the broader market, he said. Hong Kong has long been a gateway for global investors seeking exposure to mainland Chinese companies, which currently make up 70% of the Hang Seng Index's weighting. While this role has also left the city's stocks vulnerable to China-US tensions, strong performance by recent entrants shows investors believe the rewards of owning a slice of China's new-economy stocks outweigh the risks of volatility. Share prices for bubble tea makers Mixue Group and Guming Holdings Ltd, and toy manufacturer Bloks Group Ltd., have more than doubled since their Hong Kong debuts this year. The offerings are 'fundamentally reshaping the DNA of the market, representing a strategic upgrade for the city's market,' said Yang Ruyi, fund manager at Shanghai Prospect Investment Management Co. 'Hong Kong is rebranding from merely a China offshore market into a globally- watched benchmark pricing the new economy.' Tech stocks and those embodying new consumption trends could make up 50% of the weightings of the exchange's constituents in the coming years, she expected. To some market watchers, the burst of activity is evoking memories of the initial public offering (IPO) boom in the early 2000s that laid the groundwork for a near-300% rally in the Hang Seng Index over the four years through 2007. Zeng Wenkai, a fund manager at Shengqi Asset Management, draws parallels to the momentum that followed Tencent Holdings Ltd's 2004 debut, and sees valuations increasing by 20% across the board over the next year. In another potential boost, fast-fashion retailer Shein Group Ltd is considering switching its planned IPO to Hong Kong from London. The bullish sentiment is evident in the gains in Hong Kong Exchanges & Clearing Ltd, whose stock has rallied 36% this year. IPO proceeds could reach HK$160bil – this year and put Hong Kong back at the top perch globally, according to estimates by CGS International. Bing Yuan, a fund manager at Edmond de Rothschild Asset Management, said stellar listings by the likes of CATL and Jiangsu Hengrui Pharmaceuticals Co suggest companies with global footprints and strong governance standards tend to attract more interest from international investors. Despite the budding optimism, a meaningful boost to liquidity and a shift in global funds' perception of Hong Kong as an attractive destination may take time to materialise. There is also the risk of new listings diverting demand away from existing stocks and somewhat offsetting the boost to the broader market. There's little doubt though that a broader revaluation is underway. The Hang Seng Index is among Asia's best performers this year, thanks to an earlier rally driven by DeepSeek's artificial intelligence breakthrough and Beijing's economic support. The Hong Kong benchmark now trades at 10.3 times forward earnings estimates, above a three-year average ratio at around nine. 'The inclusion of H-share listings of A-share companies in major MSCI indexes could serve as a meaningful catalyst for both passive and active capital flows into Hong Kong,' said Gary Tan, portfolio manager at Allspring Global Investments. 'This is particularly significant for sectors such as tech and consumer, which remain underrepresented in Hong Kong relative to their growing importance in China's economic future.' — Bloomberg
Mint
3 days ago
- Business
- Mint
Chinese Listing Spree Sparks Revival Hopes in Hong Kong Stocks
(Bloomberg) -- A wave of listings by Chinese companies is expected to reinvigorate trading activity in Hong Kong, with optimism growing that a robust pipeline of debuts will drive the broader stock market higher. First-time share sales in Hong Kong have raised HK$77 billion ($9.9 billion) this year through May, the most for the period since 2021, buoyed by a blockbuster offering by battery giant Contemporary Amperex Technology Co. The boom looks set to continue as companies that represent China's industrial ambitions and rising technological capabilities — such as chipmaker Will Semiconductor Co. and luxury carmaker Seres Group Co. — prepare to debut on the Hong Kong exchange. While there is yet to be a meaningful pickup in turnover, the listings are a welcome development for a market that had been bogged down in recent years by low liquidity and a dearth of prominent new entrants to attract global capital. The Hang Seng Index remains 25% below its 2021 peak despite a 16% gain this year. 'The fundraising rush will be a boon for liquidity and finally make Hong Kong 'China's Nasdaq,' more so than any of the onshore growth boards, given the quality of the listings,' said Chen Da, founder of Dante Research. The arrival of high-profile Chinese companies, and the trading activity that brings, may revitalize stocks that had fallen into obscurity due to low turnover in the broader market, he said. Hong Kong has long been a gateway for global investors seeking exposure to mainland Chinese companies, which currently make up 70% of the Hang Seng Index's weighting. While this role has also left the city's stocks vulnerable to China-US tensions, strong performance by recent entrants shows investors believe the rewards of owning a slice of China's new-economy stocks outweigh the risks of volatility. Share prices for bubble tea makers Mixue Group and Guming Holdings Ltd., and toy manufacturer Bloks Group Ltd., have more than doubled since their Hong Kong debuts this year. The offerings are 'fundamentally reshaping the DNA of the market, representing a strategic upgrade for the city's market,' said Yang Ruyi, fund manager at Shanghai Prospect Investment Management Co. 'Hong Kong is re-branding from merely a China offshore market into a globally-watched benchmark pricing the new economy.' Tech stocks and those embodying new consumption trends could make up 50% of the weightings of the exchange's constituents in the coming years, she expected. To some market watchers, the burst of activity is evoking memories of the IPO boom in the early 2000s that laid the groundwork for a near-300% rally in the Hang Seng Index over the four years through 2007. Zeng Wenkai, a fund manager at Shengqi Asset Management, draws parallels to the momentum that followed Tencent Holdings Ltd.'s 2004 debut, and sees valuations increasing by 20% across the board over the next year. In another potential boost, fast-fashion retailer Shein Group Ltd. is considering switching its planned initial public offering to Hong Kong from London. The bullish sentiment is evident in the gains in Hong Kong Exchanges & Clearing Ltd., whose stock has rallied 36% this year. IPO proceeds could reach HK$160 billion — or $20 billion — this year and put Hong Kong back at the top perch globally, according to estimates by CGS International. Bing Yuan, a fund manager at Edmond de Rothschild Asset Management, said stellar listings by the likes of CATL and Jiangsu Hengrui Pharmaceuticals Co. suggest companies with global footprints and strong governance standards tend to attract more interest from international investors. Despite the budding optimism, a meaningful boost to liquidity and a shift in global funds' perception of Hong Kong as an attractive destination may take time to materialize. There is also the risk of new listings diverting demand away from existing stocks and somewhat offsetting the boost to the broader market. Read: Chinese Firms Go on Fundraising Spree Amid Rush of Easy Money There's little doubt though that a broader revaluation is underway. The Hang Seng Index is among Asia's best performers this year, thanks to an earlier rally driven by DeepSeek's artificial intelligence breakthrough and Beijing's economic support. The Hong Kong benchmark now trades at 10.3 times forward earnings estimates, above a three-year average ratio at around nine. 'The inclusion of H-share listings of A-share companies in major MSCI indexes could serve as a meaningful catalyst for both passive and active capital flows into Hong Kong,' said Gary Tan, portfolio manager at Allspring Global Investments. 'This is particularly significant for sectors such as tech and consumer, which remain underrepresented in Hong Kong relative to their growing importance in China's economic future.' --With assistance from Abhishek Vishnoi and Dave Sebastian. More stories like this are available on
Japan Today
20-05-2025
- Business
- Japan Today
Asian shares advance after China cuts interest rates to boost economy
Hang Seng Index is displayed on the digital screen at the listing ceremony of Contemporary Amperex Technology Co. (CATL) in Hong Kong, Tuesday, May 20, 2025. (AP Photo/Chan Long Hei) By ELAINE KURTENBACH Asian shares rallied Tuesday after China cut key interest rates as part of its effort to fend off malaise worsened by the trade war. Shares in China's CATL, the world's largest maker of electric batteries, jumped about 13% in its Hong Kong trading debut after it raised about $4.6 billion in the world's largest IPO this year. Its shares traded in Shenzhen, mainland China's smaller share market after Shanghai, edged 0.1% higher after dipping earlier in the day. Australia's central bank on Tuesday reduced its benchmark interest rate by a quarter percentage for a second time this year, to 3.85% after inflation fell within a target range. China's central bank made its first cut to its loan prime rates in seven months in a move welcomed by investors eager for more stimulus as the world's second largest economy feels the pinch of higher tariffs imposed by U.S. President Donald Trump. The People's Bank of China cut the one-year loan prime rate, the reference rate for pricing all new loans and outstanding floating rate loans, to 3.00% from 3.1%. It cut the 5-year loan prime rate to 3.5% from 3.6%. With China's chief concern being deflation due to slack demand rather than inflation, economists have been expecting such a move. Data reported Monday showed the economy under pressure from Trump's trade war, with retail sales and factory output slowing and property investment continuing to fall. Tuesday's cuts probably won't be the last this year, Zichun Huang of Capital Economics said in a report. 'But modest rate cuts alone are unlikely to meaningfully boost loan demand or wider economic activity,' Huang said. Hong Kong's Hang Seng gained 0.9% to 23,542.46 early Tuesday, while the Shanghai Composite index edged 0.1% higher. In Tokyo, the Nikkei 225 climbed 0.5% to 37,685.09, while Australia's S&P/ASX 200 rose 0.6% to 8,343.30. South Korea's Kospi added 0.1% to 2,606.58, while the Taiex in Taiwan was up 0.4%. On Monday, U.S. stocks, bonds and the value of the U.S. dollar drifted through a quiet day after Moody's Ratings became the last of the three major credit-rating agencies to say the U.S. federal government no longer deserves a top-tier 'Aaa' rating. The S&P 500 picked up 0.1% to 5,963.60. The Dow Jones Industrial Average added 0.3% to 42,792.07, and the Nasdaq composite rose just 4.36 points to 19,215.46. Moody's pointed to how the U.S. government continues to borrow more and more money to pay for its expenses, with political bickering an obstacle to cutting spending or raising taxes order to get the national debt under more control. The problems aren't new. Standard & Poor's lowered its credit rating for the U.S. government in 2011. The move by Moody's essentially warns investors globally not to lend to the U.S. government at such low interest rates, and the yield on the 10-year Treasury briefly jumped above 4.55% early Monday morning before falling to 4.45%. The yield on a 30-year Treasury bond briefly leaped above 5% before likewise receding. The downgrade by Moody's comes as Washington is set to debate potential cuts in tax rates that could siphon away more revenue. If Washington has to pay more in interest to borrow cash, that could cause interest rates to rise for U.S. households and businesses, too, in turn slowing the economy. The downgrade adds to a long list of concerns on investors' minds, chief among them President Donald Trump's trade war. It has forced investors globally to question whether the U.S. bond market and the U.S. dollar still deserve their reputations as some of the safest places to park cash during a crisis. The U.S. economy has held up so far and hopes are high that Trump will eventually relent on his tariffs after striking trade deals with other countries. But big companies have been warning about uncertainty over the future. Walmart, for example, said recently that it will likely have to raise prices because of tariffs. That caused Trump over the weekend to criticize Walmart and demand it and China 'eat the tariffs.' Walmart's stock slipped 0.1% Monday. In other trading early Tuesday, U.S. benchmark crude oil slipped 2 cents to $62.12 per barrel. Brent crude, the international standard, shed 7 cents to $65.47 per barrel. The U.S. dollar fell to 144.83 Japanese yen from 144.86 yen. The euro was unchanged at $1.1244. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Asahi Shimbun
20-05-2025
- Business
- Asahi Shimbun
Asian shares advance after China cuts interest rates to boost economy
Hang Seng Index is displayed on the digital screen at the listing ceremony of Contemporary Amperex Technology Co. (CATL) in Hong Kong, May 20, 2025. (AP Photo) Asian shares rallied Tuesday after China cut key interest rates as part of its effort to fend off malaise worsened by the trade war. Shares in China's CATL, the world's largest maker of electric batteries, jumped about 13% in its Hong Kong trading debut after it raised about $4.6 billion in the world's largest IPO this year. Its shares traded in Shenzhen, mainland China's smaller share market after Shanghai, edged 0.1% higher after dipping earlier in the day. Australia's central bank on Tuesday reduced its benchmark interest rate by a quarter percentage for a second time this year, to 3.85% after inflation fell within a target range. China's central bank made its first cut to its loan prime rates in seven months in a move welcomed by investors eager for more stimulus as the world's second largest economy feels the pinch of higher tariffs imposed by U.S. President Donald Trump. The People's Bank of China cut the one-year loan prime rate, the reference rate for pricing all new loans and outstanding floating rate loans, to 3.00% from 3.1%. It cut the 5-year loan prime rate to 3.5% from 3.6%. With China's chief concern being deflation due to slack demand rather than inflation, economists have been expecting such a move. Data reported Monday showed the economy under pressure from Trump's trade war, with retail sales and factory output slowing and property investment continuing to fall. Tuesday's cuts probably won't be the last this year, Zichun Huang of Capital Economics said in a report. 'But modest rate cuts alone are unlikely to meaningfully boost loan demand or wider economic activity,' Huang said. Hong Kong's Hang Seng gained 0.9% to 23,542.46 early Tuesday, while the Shanghai Composite index edged 0.1% higher. In Tokyo, the Nikkei 225 climbed 0.5% to 37,685.09, while Australia's S&P/ASX 200 rose 0.6% to 8,343.30. South Korea's Kospi added 0.1% to 2,606.58, while the Taiex in Taiwan was up 0.4%. On Monday, U.S. stocks, bonds and the value of the U.S. dollar drifted through a quiet day after Moody's Ratings became the last of the three major credit-rating agencies to say the U.S. federal government no longer deserves a top-tier 'Aaa' rating. The S&P 500 picked up 0.1% to 5,963.60. The Dow Jones Industrial Average added 0.3% to 42,792.07, and the Nasdaq composite rose just 4.36 points to 19,215.46. Moody's pointed to how the U.S. government continues to borrow more and more money to pay for its expenses, with political bickering an obstacle to cutting spending or raising taxes order to get the national debt under more control. The problems aren't new. Standard & Poor's lowered its credit rating for the U.S. government in 2011. The move by Moody's essentially warns investors globally not to lend to the U.S. government at such low interest rates, and the yield on the 10-year Treasury briefly jumped above 4.55% early Monday morning before falling to 4.45%. The yield on a 30-year Treasury bond briefly leaped above 5% before likewise receding. The downgrade by Moody's comes as Washington is set to debate potential cuts in tax rates that could siphon away more revenue. If Washington has to pay more in interest to borrow cash, that could cause interest rates to rise for U.S. households and businesses, too, in turn slowing the economy. The downgrade adds to a long list of concerns on investors' minds, chief among them President Donald Trump's trade war. It has forced investors globally to question whether the U.S. bond market and the U.S. dollar still deserve their reputations as some of the safest places to park cash during a crisis. The U.S. economy has held up so far and hopes are high that Trump will eventually relent on his tariffs after striking trade deals with other countries. But big companies have been warning about uncertainty over the future. Walmart, for example, said recently that it will likely have to raise prices because of tariffs. That caused Trump over the weekend to criticize Walmart and demand it and China 'eat the tariffs.' Walmart's stock slipped 0.1% Monday. In other trading early Tuesday, U.S. benchmark crude oil slipped 2 cents to $62.12 per barrel. Brent crude, the international standard, shed 7 cents to $65.47 per barrel. The U.S. dollar fell to 144.83 Japanese yen from 144.86 yen. The euro was unchanged at $1.1244.
