[HONG KONG] One of this year’s biggest listings is coming together in Hong Kong without the involvement of Wall Street banks.
Chery Automobile’s planned Hong Kong initial public offering (IPO), which sources familiar say could raise about US$1.5 billion, is being led by an all-Chinese bank roster after others decided not to participate. JPMorgan Chase is no longer on the deal after being chosen by Chery in late 2024 to work on the offering, the sources said.
JPMorgan dropped off the deal before signing a formal mandate, the sources said. Some other international banks have also shied away from working on the transaction, according to the sources.
Major share sales typically include global banks in the capacity of adviser, underwriter or similar. For example, Contemporary Amperex Technology Co Limited’s potential US$5 billion listing – one of Hong Kong’s most anticipated deals – has Bank of America and JPMorgan on the lead arranging side.
Chery, one of China’s top car exporters and a rarity among them for not being listed, is working with the Hong Kong units of China International Capital Corporation, Huatai Securities and GF Securities as joint sponsors on its listing.
China banks
Global investment banks face competition from Chinese rivals often offering cheaper advisory, financing and other services. In another recent case, ride-hailing app CaoCao just submitted IPO documents showing China’s Huatai Financial Holdings, ABCI Capital and GF Capital as joint sponsors.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Some US banks have also been more selective on deals to protect profits and avoid links with companies that may have exposure to markets sanctioned by the US. Chery is one of the top-selling car brands in Russia, filling a void left by global manufacturers after the invasion of Ukraine.
Chery did not respond to requests for comment on the IPO plans. JPMorgan declined to comment.
About US$2.7 billion has been raised via IPOs and second listings in Hong Kong in 2025, up roughly 170 per cent from a year earlier, data compiled by Bloomberg show. Bubble-tea chain Mixue Group raised US$511 million in early March. Its shares have surged nearly 150 per cent since then. Other equity capital market transactions this year include US$11 billion raised by Xiaomi and BYD via stock offerings.
Chery auto
Chery is a key asset for Chery Holding Group, which is also involved in financial services and real estate. The company has said it will scale back operations in Russia to mitigate sanctions risks. It also said in its prospectus that sales with sanctioned Cuba and Iran had ceased as at the end of last year.
Deliberations for the Hong Kong IPO are ongoing and details such as size and timing could change, the sources said, asking not to be identified as discussing a private matter.
As part of its expansion overseas, Chery plans to set up a US$1 billion electric vehicle factory in Turkey with a local partner, aiming for an annual capacity of 200,000 vehicles, Turkey’s Industry Ministry announced in March. Founded in 1997, Chery sells cars under the brands Chery, Jetour, Exeed, iCar and Luxeed. BLOOMBERG
