Chery Shares Jump 11% in Hong Kong Market Debut

Hong Kong – Shares in Chery Automobile, China's largest exporter of vehicles, surged in their Hong Kong listing on Wednesday following an initial public offering that raised HK$9.1 billion (US$1.2 billion).

The stock opened on a good note, rising to HK$34.16, which is approximately 11% higher than its IPO at HK$30.75. Chery is among a growing tide of Chinese companies tapping Hong Kong's robust IPO market this year.

The firm had organized a listing ceremony on the Hong Kong Stock Exchange but it was canceled because of the city's closure due to Super Typhoon Ragasa.

Chery has been ramping up its international expansion, especially in Vietnam, the Middle East and Europe. Its SUV sub-brand Jetour will introduce three sport-utility vehicles in Poland this November, while its flagship brand entered the U.K. market last July. Other brands such as Jaecoo and Omoda were also launched in Europe over the last two years.

Analysts point out that while rivals such as BYD have taken center stage, Chery has been quietly establishing itself on the international stage. Sino Auto Insights founder Tu Le said the automaker's model of local production in the Middle East and Southeast Asia has mitigated its exposure to tariffs on exports.

"They're in a much better position than many Chinese automakers that are only exporting," he added.

Tariff risks are still a challenge, as the U.S. and Canada are both charging 100% tariffs on Chinese electric vehicle imports and the European Union charging up to 45.3%. Nevertheless, Chery continues to expand sales, dispatching 242,736 vehicles in August, of which 129,472 were exports, a year-on-year increase of 14.6% and 32.3% respectively.