Shares in Chinese battery giant CATL soared more than 18 percent on its Hong Kong debut Tuesday after raising US$4.6 billion in the world’s biggest initial public offering this year.A global leader in the sector, CATL produces more than a third of all electric vehicle (EV) batteries sold worldwide.The firm has been buoyed by a rapid growth in China’s domestic electric vehicle sector and it now works with major brands including Tesla, Mercedes-Benz, BMW and Volkswagen.However, it has also found itself in the crossfire of a superpower clash between Washington and Beijing for tech dominance, with Washington putting it on a blacklist naming it as a military company.The firm is already traded in the southern Chinese city of Shenzhen, and its plan for a secondary listing in Hong Kong was announced in December.In morning trading its Hong Kong shares hit a high of HK$311.40 (US$39.92), up 18.4 percent from its listing price of HK$263.00.”This listing signifies our deeper integration into the global capital markets and marks a new milestone in our mission to drive the global zero-carbon economy,” CATL’s founder and chairman Robin Zeng said at the firm’s listing ceremony on Tuesday.The raised funds could be used to accelerate its overseas expansion, including building its second European factory in Hungary after launching its first in Germany in January 2023.The strong interest in the company’s shares come even as it comes under the spotlight in the United States.In a list issued in January by the Defense Department, CATL was designated as a “Chinese military company”.The US House Select Committee on the Chinese Communist Party highlighted this inclusion in letters to two Wall Street banks in April, urging them to withdraw from the IPO deal over its alleged links to the military.But the banks — JPMorgan and Bank of America — remain onboard.- Hong Kong IPO goal -Beijing has denounced the list as “suppression”, while CATL denied engaging “in any military related activities”.CATL also said in May filings it was “proactively engaging” with the US defence department to “address the false designation”.Founded in 2011 in the eastern Chinese city of Ningde, the company has been given strong financial support from Beijing, which has sought in recent years to shore up domestic strength in certain strategic high-tech sectors.It has also weathered a fierce price war in China’s expansive EV sector that has put smaller firms under huge pressure to compete while remaining financially viable.Tuesday’s blockbuster listing is also a boon for Hong Kong’s stock exchange, which is eager for the return of big-name Chinese listings as it looks to regain its crown as the world’s top venue for IPOs.The Chinese finance hub saw a steady decline in new offerings after Beijing’s regulatory crackdown starting in 2020 led some mainland mega-companies to put their plans on hold, while a strict security law added to the uncertainty for companies looking to list.Data from the Hong Kong Stock Exchange shows it is processing dozens of applications from Chinese companies this year.Analysts said Tuesday’s IPO showcases Hong Kong’s role as a place for Chinese companies to raise capital.”We are also seeing a rising demand on portfolio diversification away from US dollar-denominated assets, underscored by the recent strength in the Hong Kong dollar,” Jason Lui, head of APAC equity and derivative strategy at BNP Paribas, told AFP.

Asian markets rose Tuesday as investor sentiment returned following the previous day’s US rating-fuelled losses, with sentiment also boosted after China cut interest rates to historic lows.The rally tracked advances on Wall Street, where the initial selloff sparked by Moody’s removal of Washington’s triple-A grade soon gave way to a push back into beaten-down equities amid hopes about US trade talks.After Donald Trump’s April 2 tariff blitz sowed global turmoil, the deal between China and the United States last week — which slashed eye-watering tit-for-tat levies — has re-energised dealers and pushed most markets back to levels before the US president’s “Liberation Day” duties.Trump suspended his harshest measures for 90 days until mid-July, and while few solid agreements have been reached so far there is optimism that the worst of the crisis has passed.Traders are also hoping the Federal Reserve will cut interest rates this year, with two reductions expected, according to Bloomberg News. However, two central bank officials remained cautious about when to resume their monetary easing, amid worries that the tariffs and possible tax cuts will reignite inflation.New York Fed boss John Williams indicated decision-makers might not be able to move before September, while the central bank’s vice chairman Philip Jefferson urged patience, adding that it was crucial to make sure any price increases do not become entrenched.In early trade, Hong Kong, Shanghai, Tokyo, Sydney, Seoul, Singapore, Taipei, Wellington and Jakarta were all up.The gains came as China’s central bank cut two key interest rates as officials battle to kickstart the economy, which faces persistent headwinds from a long-term domestic spending slump, a protracted debt crisis in the property sector and high youth unemployment.The People’s Bank of China lowered its one-year Loan Prime Rate (LPR), the benchmark for the most advantageous rates lenders can offer to businesses and households, to 3.0 percent from 3.1 percent.The five-year LPR, the benchmark for mortgage loans, was cut to 3.5 percent to 3.6 percent. Both rates were last cut in October to what were then record lows.”The rate cuts will reduce interest payments on existing loans, taking some pressure off indebted firms. It will also reduce the price of new loans,” Zichun Huang, China economist at Capital Economics, said in a note.However, she added that “modest rate cuts alone are unlikely to meaningfully boost loan demand or wider economic activity”.The “reductions… probably won’t be the last this year”, she said.The move came a day after data showed Chinese retail sales came in below expectations in April, highlighting a continued lack of confidence among consumers.In Hong Kong, Chinese battery giant CATL soared more than 13 percent on its debut, having raised US$4.6 billion in the world’s biggest initial public offering this year.The firm, which produces more than a third of all electric vehicle batteries sold worldwide, saw strong demand even after it was designated as a “Chinese military company” on a US list in January.The US House Select Committee on the Chinese Communist Party even highlighted this inclusion in letters to two US banks in April, urging them to withdraw from the IPO deal with the “Chinese military-linked company”.But the two banks — JPMorgan and Bank of America — are still onboard.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 0.5 percent at 37,691.56 (break)Hong Kong – Hang Seng Index: UP 1.0 percent at 23,568.99Shanghai – Composite: UP 0.2 percent at 3,373.52Euro/dollar: DOWN at $1.1243 from $1.1244 on MondayPound/dollar: UP at $1.3363 from $1.3360Dollar/yen: DOWN at 144.84 yen from 144.87 yenEuro/pound: UP at 84.15 pence from 84.14 penceWest Texas Intermediate: UP 0.2 percent at $62.82 per barrelBrent North Sea Crude: DOWN 0.1 percent at $65.46 per barrelNew York – Dow: UP 0.3 percent at 42,792.07 (close)London – FTSE 100: UP 0.2 percent at 8,699.31 (close)