CATL Shares Drop as Lockup Expires, Triggering Investor Sell-Off in Hong Kong
China’s battery giant CATL saw its Hong Kong-listed shares tumble on Thursday, falling as much as 8.75% after a major lockup expiry prompted early investors to cash in their profits. About 77.5 million shares were released following a six-month sales restriction, opening a wave of selling pressure that weighed heavily on the stock. CATL, widely recognized as the world’s largest electric-vehicle battery maker, had only months earlier achieved one of the biggest IPOs of the year.
Those newly freed shares were held by 23 cornerstone investors—including Sinopec HK, Kuwait Investment Authority, and UBS Asset Management—according to the company’s prospectus. With the expiry unlocked, many investors appeared eager to realize gains after CATL’s strong market performance. By late morning, the stock was still trading more than 6% lower. Its Shenzhen-listed shares were also down 2.59%, adding to the broader downward sentiment.
Market indexes across China reflected the cautious mood. Hong Kong’s Hang Seng Index reversed early gains to slip 0.47%, while the mainland CSI 300 fell 0.32%. The weakness in CATL came despite renewed optimism in global chip stocks after Nvidia delivered stronger-than-expected quarterly results. Nvidia’s upbeat earnings and bullish forecast sent its shares soaring more than 4% in extended trading, reinforcing confidence in the booming AI sector.
Across the region, Asian markets rode that wave of tech optimism. Japan’s Nikkei 225 closed 2.65% higher, supported by sharp gains in chip-related companies like Tokyo Electron, Lasertec, and Renesas. South Korea’s Kospi also climbed nearly 2%, boosted by semiconductor leaders Samsung Electronics and SK Hynix. Taiwan’s Taiex jumped more than 3%, while Australia’s ASX 200 and India’s Nifty 50 posted steady gains.
Meanwhile, U.S. equity futures pointed higher during Asian trading hours as Nvidia’s strong guidance helped ease worries about stretched tech valuations and slowing momentum in the AI trade. Wall Street rebounded overnight, with the S&P 500 ending a four-day losing streak, the Nasdaq rising more than half a percent, and the Dow adding 47 points. Despite the broader global rally, CATL’s decline underscored the market’s sensitivity to lockup expirations and investor profit-taking—especially after record-breaking IPOs in a volatile year.
source: cnbc