Chinese automaker Chery gains in Hong Kong debut
The financial hub's capital market has rebounded strongly this year, with dozens of Chinese companies piling into the city to raise overseas capital amid broader geopolitical tensions.
Chery's shares surged more than 10 percent in morning trade before closing at HK$31.92 -- up 3.8 percent from the high end of its IPO price range.
The company said 35 percent of the funds raised would be used for research and development of new passenger vehicle models and to expand its product portfolio.
The rest will go towards developing next-generation vehicles, expanding overseas markets and upgrading production facilities.
Founded in 1997 in China's southeastern Anhui province, Chery has remained the country's top car exporter since 2003, according to consultancy Frost & Sullivan.
But the automaker warned in its prospectus "the current tension in international trade and rising political tension" could affect its operations.
Hong Kong's stock market closed down 0.13 percent on Thursday.
Many of the world's biggest fund-raisings by Chinese companies, including battery giant CATL, pharmaceutical firm Jiangsu Hengrui and refrigeration parts firm Sanhua, kept up the buzz in Hong Kong's capital markets.
Analysts expect the city to reclaim its position as the world's top IPO venue this year as regulators streamlined listing rules and approval processes.
China's Zijin Gold International is raising $3.2 billion in Hong Kong in September, which is poised to be one of the world's largest this year.
Its trading debut was delayed to September 30 after Super Typhoon Ragasa brought the city to a standstill.
Zijin Gold's shares in Shanghai hit a record high on Thursday, buoyed by surging prices for gold and other precious metals.
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