HONG KONG, May 21 (WSH) — Contemporary Amperex Technology Co. Limited (CATL), the world’s largest electric vehicle battery manufacturer, made a strong debut on the Hong Kong Stock Exchange Tuesday, with its share price surging 16% on the first day of trading. The offering raised $4.6 billion, making it the largest initial public offering globally in 2025 so far, according to data from Dealogic.
However, the listing was notably shaped by escalating geopolitical tensions, as CATL barred U.S. investors from participating in the IPO — a decision highlighting the deepening financial rift between the world’s two largest economies.
A Major IPO Without Wall Street
Due to rising political pressure and regulatory scrutiny, CATL opted to use a “Rule S” structure, which prohibits the sale of shares to U.S.-based investors and exempts the company from filing certain documents with U.S. regulators. The company stated in its filings that “geopolitical risks and changes in trade policies or tariff regulations” pose significant uncertainties to its global operations.
Despite strong investor interest globally, American institutional investors were largely sidelined. Key participants in the IPO included Kuwait’s sovereign wealth fund, Hillhouse Capital, and U.S.-based Oaktree Capital, which participated through offshore channels.
Wider Implications for Global Capital Markets
The absence of U.S. investors in such a significant IPO signals a shift in global capital flows, where geopolitical risk is increasingly dictating access and valuation. While American investors can still trade CATL shares via offshore accounts, experts warn of long-term market fragmentation.
Zonghan Shi, a China finance expert at the University of California, San Diego, estimated that up to 10% of CATL’s investor base could have been U.S.-based under different political circumstances. “This is a watershed moment,” Shi said. “It could mark the beginning of a broader trend where American investors are cut off from high-growth sectors in emerging markets.”
Despite Tensions, CATL Prevails
Still, CATL’s successful listing underscores its global clout in the EV supply chain. The IPO was priced at HKD 263 per share (approximately USD 33.62), and the proceeds are expected to support its expansion in overseas markets.
As financial markets brace for further realignments shaped by geopolitics, CATL’s Hong Kong IPO may be seen not only as a funding milestone but also as a symbol of how capital now moves within the constraints of national security policies.
