CATL share sale’s tightening discount shows China tech momentum

Published Tue, Apr 21, 2026 · 03:02 PM

[HONG KONG] Contemporary Amperex Technology’s (CATL) latest share sale – priced at a 5.1 per cent discount – was more than twice subscribed. That underscores strong investor appetite for the stock even after the battery maker’s 20 per cent rally this year.

The inquiry‑based sale of 58 million shares, or 1.27 per cent of CATL’s total shares, was priced at 410.34 yuan apiece on Monday (Apr 20) following bids from 50 institutional investors, according to a filing with the Shenzhen Stock Exchange. That compares with a 6.9 per cent discount in a similar transaction in November.

CATL shares surged as much as 6.1 per cent to a record in Hong Kong and traded as much as 3.6 per cent higher in Shenzhen following the announcement of the details of the deal worth 23.8 billion yuan (S$4.4 billion).

China’s technology and battery stocks have been on a blistering rally, with the ChiNext Index up 87 per cent over the past year and recently reaching an 11-year high. Energy storage stocks have gained momentum recently as geopolitical tensions in the Middle East drove a jump in oil prices.

Some companies in the industry are riding the frenzy to strong share sales in Hong Kong, including sizzling debuts by companies such as Nvidia supplier Victory Giant Technology Huizhou, energy storage equipment maker Sigenergy Technology and robotics software unicorn Manycore Tech.

Compared with other transactions, CATL’s latest sale attracted relatively strong interest. A large shareholder in Sharetronic Data Technology earlier sold shares at a 24 per cent discount, despite the offering also being more than twice oversubscribed. Meanwhile, 12 million shares is changing hands in Beijing Compass Technology Development at a 14 per cent discount, according to a filing.

Inquiry‑based stake transfers usually carry a six‑month lock‑up, meaning that investors who participated in the previous sale will be free to exit their positions next month. Such transfers are a channel structure often used onshore by early investors to reduce holdings without adding pressure to the secondary market.

“These inquiry‑based stake transfers are fully market‑driven and offer a clear read on investor sentiment, with discounts varying widely,” said Du Kejun, a fund manager at Shandong Camel Asset Management. “For an industry leader like CATL, the narrow discount reflects institutional confidence six months out, while the strengthening premium in Hong Kong underpins the view that there is room to run.” BLOOMBERG