Chery Holding Group Co has enlisted JPMorgan Chase & Co to assist in arranging a potential initial public offering (IPO) for its automotive unit, Chery Automobile Co, aiming to raise up to $1 billion. This IPO is anticipated to take place in the second or third quarter of 2025, with Chery seeking a valuation exceeding 100 billion yuan (approximately RM61.22 billion). Previously, Chery had also selected China International Capital Corp, GF Securities Co, and Huatai International Ltd as arrangers for this significant financial move. [90f9c5ec]
Chery Auto, founded in 1997, stands as one of China's largest car exporters and is currently not publicly listed. The company is actively pursuing global expansion, which includes plans for a new $800 million manufacturing plant in Vietnam, expected to begin mass production by the end of 2025. This expansion aligns with the broader trend of Chinese automotive companies seeking to increase their international footprint. [90f9c5ec]
In a related context, Contemporary Amperex Technology Co. Ltd. (CATL) is also exploring a second listing in Hong Kong, aiming to raise at least $5 billion. This potential listing could occur in the first half of 2025 and would surpass Midea Group Co.’s $4.6 billion share sale in September 2024. CATL's shares have surged by 65% this year, reflecting strong investor interest in the electric vehicle battery market. [78ddae4d]
Additionally, the recent merger of Guotai Junan Securities and Haitong Securities, announced on November 22, 2024, is reshaping China's financial landscape, creating the largest brokerage firm in the country with combined assets of 330 billion yuan. This merger is part of a broader trend of consolidations within the brokerage industry, aimed at enhancing competitiveness. [1f164b71]
The Stock Connect program has facilitated significant foreign investments in the Chinese market, with over 1.8 trillion yuan invested since its launch in 2014. As of September 2024, foreign investors held 2.4 trillion yuan worth of Chinese stocks, indicating a growing interest in the market. [19ffe470]
Furthermore, financial regulators are enhancing the Swap Connect program to open up China’s swap market to foreign investors, which has already seen significant transaction volumes since its launch in May 2023. [de31a63e]