China’s leading vehicle exporter, Chery Automobile, made a strong debut on the Hong Kong Stock Exchange, with shares rising 11% above the initial offer price, raising HK$9.1 billion. The stock opened at HK$34.16, beating the IPO price of HK$30.75, as Chinese firms continue to tap Hong Kong’s active IPO market.
Although Chery cancelled its usual listing ceremony due to disruptions from Super Typhoon Ragasa, the stock launch went ahead without delay. The company is swiftly expanding internationally, focusing on Vietnam, the Middle East and Europe. Its SUV brand Jetour plans to enter Europe this November with three petrol SUVs launching in Poland.
Chery has also entered the UK market, launching its flagship vehicles alongside the Jaecoo range this year and the Omoda brand last year.
Tu Le, founder and managing director of Sino Auto Insights, told CNBC, “Chery has been a little bit under the radar as everyone has been talking about BYD.” He noted the brand’s manufacturing presence across multiple countries and growing strength in the UK and Australia.
Challenges remain from trade barriers: Chinese EVs face 100% tariffs in the U.S. and Canada, while the EU imposes levies up to 45.3%. Le pointed out Chery’s local manufacturing in the Middle East and Southeast Asia helps reduce tariff risks, giving it an advantage over competitors reliant on exports.
In August, Chery sold 242,736 vehicles, with 129,472 exported, up 14.6% and 32.3% year-on-year respectively.