CATL’s $5 Billion Placement Paves Way for Hong Kong Deals After Wartime Disruption

3njmnzkf188wt(utajk6zxze_media_dl_1.png Bloomberg data, Bloomberg Intell

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(Bloomberg) — A $5 billion placement by battery giant Contemporary Amperex Technology Co. Ltd. is setting the stage for a fresh wave of share sales in Hong Kong after volatility triggered by the war in Iran weighed on the deal flow. 

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Proceeds from Hong Kong share sales by already-listed companies and block trades by existing holders fell 9% from a year earlier to $14 billion through the end of April, according to data compiled by Bloomberg. These offerings, like CATL’s, typically collect investor orders in one night, leaving them at the mercy of fast-changing market dynamics that day. 

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Such was the volatile environment companies and shareholders had to contend with since the US and Israel attacked Iran: Market-moving milestones like a ceasefire announcement would quickly unravel, leading to an abrupt reversal. That led to a stark change from last year, when by the end of April Hong Kong had two $5 billion-plus placements — by electric-vehicle maker BYD Co. and smartphone-to-EV company Xiaomi Corp.

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Volatility from the war was behind the slight slowdown in overnight share sales to a “certain degree,” said Peihao Huang, head of Asia-Pacific equity capital markets at JPMorgan Chase & Co. That said, the pipeline for deals this year is more diverse than the two jumbo placements that dominated proceeds this time in 2025, she added. 

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Huang expects equity and equity-linked deals in Hong Kong — including new listings, placements, block trades and sales of bonds that can be converted into stock — to exceed 2025 proceeds “by a good margin” this year. 

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Share sales in the city raised more than $76 billion last year based on their trading dates, Bloomberg-compiled data show. Convertible and exchangeable bonds by Chinese companies denominated in Hong Kong dollars or the greenback, excluding those that must be converted into shares by a certain date, raised about $19 billion. 

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“Despite market volatility, we continue to see strong investor demand for Hong Kong and China stocks,” Huang said. 

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While placements have slowed, Hong Kong listings kept moving ahead. Listings so far this year have raised more than $19 billion, seven times the amount in the same period in 2025. That was largely thanks to what was the busiest start to the year for Hong Kong listings — before the Iran war started — and a $3 billion deal by printed circuit board maker Victory Giant Technology Huizhou Co.

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Bankers and investors are now eyeing bigger deals later in the year, like the potential initial public offering of Chinese-owned agricultural-technology firm Syngenta Group that may raise as much as $10 billion. 

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Part of the optimism is fueled by the performance of new shares. About one-fifth of Hong Kong’s 47 listings this year saw their shares more than double on the first day of trading, while roughly a third rose more than 50%, according to data compiled by Bloomberg.  

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These include deals that came to market well into the war: Optical-computing provider Lightelligence topped this year’s first-day surges in share price at 384%, while Victory Giant’s Hong Kong shares debuted 50% higher after the company priced its listing at a discount to its stock in Shenzhen.