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Business Times
5 days ago
- Automotive
- Business Times
Electric trucks are the latest threat to oil demand in China
MORE and more Chinese trucks are being powered by batteries, another sign that oil-based fuels are getting shoved to the sidelines in an increasingly electrified economy. Government incentives are boosting sales of electric trucks in a sector that has traditionally run on diesel, a fuel that makes up over a quarter of Chinese oil demand. Petrol, which accounts for more than a fifth, is already in long-term decline because of the rapid adoption of battery-powered cars. Electric trucks accounted for 22 per cent of light-duty commercial vehicle sales in April, from 13 per cent in the same month last year, according to BloombergNEF. For bigger rigs, the increase is even more pronounced, with sales trebling to 15 per cent of the total. Diesel demand is being menaced on two fronts, as liquefied natural gas had already been making inroads as a trucking fuel in recent years. As the world's biggest oil importer, major shifts in China's transport sector create waves on global energy markets. The threat to diesel is stark. More than 70 per cent of the fuel's consumption in China is tied up in road freight or the vehicles that work mines and construction sites, according to Amy Sun, an analyst at GL Consulting. The central government is leading the charge on incentives to switch from fossil fuels, with tax breaks on electric vehicle (EV) sales that include trucks. Local governments, meanwhile, are busy trying to lift economic growth via trade-in programmes that also reward EV sales. Apparent demand for diesel in China, which includes production and imports, fell 8.4 per cent year on year in April to 3.8 million barrels a day. Consumption will drop 26 per cent by the end of the decade from last year's levels, according to a briefing by Sun at GL Consulting last week. Right now, electric trucks are mostly used over short distances or at single sites such as ports and mines, she said. But that should change as batteries become longer-lasting and more charging stations are built. Electric trucks could jump to 50 per cent of new sales in the next three years, said Robin Zeng, chairman of energy storage giant Contemporary Amperex Technology Co Limited Zeng made his forecast last month at the company's launch of a new battery for heavy-duty trucks. BLOOMBERG
Business Times
27-05-2025
- Business
- Business Times
Hong Kong bourse plans to start zero-day options trading in 2026
[MUMBAI] Hong Kong's stock exchange is seeking to launch options that expire within a day as early as the first half of 2026, bringing to the Asian hub an instrument that has driven a boom in US derivatives in recent years. Hong Kong Exchanges & Clearing (HKEX) is planning to start offering so-called 'zero-days to expiry' contracts on the Hang Seng Index, according to sources familiar with the matter who asked not to be named because the matter is private. The bourse has been consulting with market participants and the feedback has been positive, they added. A HKEX representative said the exchange will communicate any updates to its product offerings to the market. Known as 0DTE contracts, the derivatives were introduced in the US in 2022 and accounted for more than half of the total S&P 500 Index options volume by the last quarter of 2024. At a panel last week, HKEX's managing director and head of equities product development said there's been 'great demand' for shorter-dated contracts, adding that the bourse wants to replicate the success seen in the world's largest equities market. HKEX, whose quarterly profit rose to a record amid a surge in stock trading and new listings, has been expanding its options offerings. It launched weekly contracts on the Hang Seng Tech Index in September and on 10 single stocks in November. Derivatives trading in Hong Kong started strong this year, and interest in the world's top initial public offering was high. On its trading debut last week, Contemporary Amperex Technology Co Limited options volume surpassed that of the city's biggest listings in the past decade, with weeklies set to start on Jun 2. BLOOMBERG
Business Times
22-05-2025
- Business
- Business Times
Chinese firms go on fundraising spree amid rush of easy money
[HONG KONG] Chinese companies are seizing on a window of opportunity to raise capital as global investors pour money into Asian assets in search of alternatives to the US. The surge in inflows created by the waning of US exceptionalism and the Beijing-Washington trade truce has fuelled one of the most active fundraising booms the region has seen in years. By far the biggest deal has been the share offering by Chinese electric vehicle (EV) battery maker Contemporary Amperex Technology Co Limited (CATL), but that's just part of a wider groundswell. Hong Kong share sales have raised US$25.8 billion this year, about 34 per cent higher than the total for all of 2024, according to data compiled by Bloomberg. Mainland companies issued US$2.8 billion of US dollar bonds in the second week of May alone, one of the busiest stretches in Asia this year, data compiled by Bloomberg show. 'The worst-case scenario of super high tariffs is behind us,' said Carlos Casanova, senior Asia economist at Union Bancaire Privee in Hong Kong. The market conditions in China appear to be more supportive than in previous years, while interest-rate cuts from the People's Bank of China have boosted liquidity, he said. CATL, as the battery giant is known, raised US$5.2 billion in its Hong Kong Kong debut on Tuesday (May 20), the largest listing in the world this year and the biggest in the city in four years. The shares jumped 16 per cent on their first trading day. The outlook is also improving for troubled mainland developers that had been largely shut out of US dollar bond markets due to the property debt crisis. Seazen Group is meeting investors this week about a potential US dollar debt sale, which may make it the first public bond offering by a major Chinese private-sector developer in more than two years. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Sharp turnaround The fundraising boom is a stark turnaround from just a few months ago, when geopolitical uncertainty and climbing interest rates had throttled demand for Chinese assets. Now, the thaw in US-China relations has encouraged money managers from London to Singapore to boost exposure to China amid optimism the country may be shaking itself free from years of sluggish growth. 'The percentage of the allocation to the global money already picked up significantly' for mainland-traded Chinese firms listing in Hong Kong this year, said Shi Qi, deputy head of capital markets at China International Capital Corp in Hong Kong, speaking on Bloomberg Television on Wednesday. 'We see Middle East sovereign funds and also some South-east Asian sovereign funds as well as other global long-onlys actually add their allocation to China,' she said. There's a healthy pipeline of future Chinese share sales, many of which are by companies without heavy reliance on US exports. Those lining up to list shares in Hong Kong include drugmaker Jiangsu Hengrui Pharmaceuticals and sensor manufacturer Hesai Group. BLOOMBERG
Time of India
20-05-2025
- Automotive
- Time of India
CATL shares surge 13% on first day of Hong Kong listing, biggest IPO deal of 2025
Shares of battery maker CATL or Contemporary Amperex Technology Co Limited, soared more than 13per cent , after the company's debut in Hong Kong's stock market on Tuesday. The company raised a whopping $4.6 billion, making it the biggest initial public offering anywhere in the world so far this year. CATL is a global leader in electric vehicle battery manufacturing, producing more than a third of all EV batteries sold worldwide. The company's secondary listing in Hong Kong comes as it ramps up efforts to expand globally, especially across Europe. The stock jumped to a high of HK$299.80 during morning trading, recording a 13.7per cent rise from its listing price of HK$263.00. Expansion CATL is already listed on the Shenzhen Stock Exchange in southern China, and its secondary listing in Hong Kong was announced last December. The funds raised from the Hong Kong listing are expected to fuel CATL's overseas growth. The company is already building a second European factory in Hungary, following the opening of its first in Germany last year. It has also partnered with automotive giant Stellantis on a $4.6 billion battery plant in Spain, due to begin production by late 2026. Blockbuster listing Tuesday's listing comes as Hong Kong's stock exchange looks forward to bringing back major Chinese firms, aiming to reclaim its title as the world's premier IPO venue. The financial markets had seen a downturn in new listings after a regulatory crackdown by Beijing in 2020 prompted several mainland giants to hold their IPO plans. Controversial IPO Meanwhile, CATL's debut has not been without controversy. In January, the US defence department designated the company as a 'Chinese military company.' In April, the US house select committee on the Chinese Communist Party urged JPMorgan and Bank of America to back out of the IPO. Both banks, however, remained involved in the deal. CATL has rejected the allegations, saying it has never engaged in any military-related activities. Beijing also criticised the US listing as political "suppression". In a strategic move to minimise potential legal fallout, CATL structured the deal as a Regulation S offering, meaning shares cannot be sold to US-based investors. Founded in 2011 in the Chinese city of Ningde, CATL flourished on the back of China's booming EV sector, strong state backing, and partnerships with major automakers including Tesla, Mercedes-Benz, BMW and Volkswagen.
Time of India
20-05-2025
- Automotive
- Time of India
CATL shares surge 13% on first day of Hong Kong listing, biggest IPO deal of 2025
Shares of battery maker CATL or Contemporary Amperex Technology Co Limited, soared more than 13%, after the company's debut in Hong Kong's stock market on Tuesday. The company raised a whopping $4.6 billion, making it the biggest initial public offering anywhere in the world so far this year. CATL is a global leader in electric vehicle battery manufacturing, producing more than a third of all EV batteries sold worldwide. The company's secondary listing in Hong Kong comes as it ramps up efforts to expand globally, especially across Europe. The stock jumped to a high of HK$299.80 during morning trading, recording a 13.7% rise from its listing price of HK$263.00. Expansion CATL is already listed on the Shenzhen Stock Exchange in southern China, and its secondary listing in Hong Kong was announced last December. The funds raised from the Hong Kong listing are expected to fuel CATL's overseas growth. The company is already building a second European factory in Hungary, following the opening of its first in Germany last year. It has also partnered with automotive giant Stellantis on a $4.6 billion battery plant in Spain, due to begin production by late 2026. Blockbuster listing Tuesday's listing comes as Hong Kong's stock exchange looks forward to bringing back major Chinese firms, aiming to reclaim its title as the world's premier IPO venue. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cost Of Amusement Park Equipment From Mexico Might Surprise You - See Tips Amusement Park Equipment | search ads Click Here Undo The financial markets had seen a downturn in new listings after a regulatory crackdown by Beijing in 2020 prompted several mainland giants to hold their IPO plans. Controversial IPO Meanwhile, CATL's debut has not been without controversy. In January, the US defence department designated the company as a 'Chinese military company.' In April, the US house select committee on the Chinese Communist Party urged JPMorgan and Bank of America to back out of the IPO. Both banks, however, remained involved in the deal. CATL has rejected the allegations, saying it has never engaged in any military-related activities. Beijing also criticised the US listing as political "suppression". In a strategic move to minimise potential legal fallout, CATL structured the deal as a Regulation S offering, meaning shares cannot be sold to US-based investors. Founded in 2011 in the Chinese city of Ningde, CATL flourished on the back of China's booming EV sector, strong state backing, and partnerships with major automakers including Tesla, Mercedes-Benz, BMW and Volkswagen. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
