After 20-Year Wait, China's Chery Auto Jumps Over 12% in Hong Kong Market Debut

TradingKey - On September 25, Chinese automaker Chery Automobile officially listed on the Hong Kong Stock Exchange, marking a historic milestone for one of China’s “last remaining unlisted major car manufacturers” as it finally fulfilled its long-standing ambition to access the capital markets. On its first day of trading, Chery’s shares performed strongly, climbing more than 12% at their intraday peak after the market opened, briefly pushing its market capitalization above HK$190 billion, though gains moderated in the afternoon.

The IPO was priced at HK$30.75 per share, with Chery offering 297.4 million new shares. Approximately 90% of the offering was allocated to international investors. At the same time, the remainder was made available to Hong Kong retail investors, raising a total of HK$9.14 billion, making it the largest automotive IPO on the Hong Kong exchange this year.

“This deal underscores Chery’s strong market position and provides the company with new funding to support its future growth”, said Wang Hang, partner and co-head of Baker McKenzie’s China capital markets practice. “Hong Kong continues to serve as a crucial springboard for Chinese companies seeking capital and international expansion.”

At the listing ceremony, Chery Chairman Yin Tongyue said, “Today’s listing is a crucial step for Chery into the international capital markets and marks a new beginning as we take on greater responsibilities and embrace a broader mission.”

Regarding the use of proceeds, Chery plans to allocate 35% of the net proceeds to developing multiple new passenger vehicle models over the next one to three years, 25% to R&D for next-generation vehicles and advanced technologies, with the remainder dedicated to supporting global expansion, upgrading its production facilities in Wuhu, and general corporate purposes.

Chery’s path to listing has not been smooth. Since 2004, the company has made multiple attempts to go public through various channels, all of which were unsuccessful due to factors such as industry cycle volatility and equity structure adjustments, until its successful Hong Kong listing this time.

From 2022 to 2024, Chery’s revenue surged from RMB 92.6 billion (approximately USD 13 billion) to RMB 269.9 billion (approximately USD 37.84 billion), representing a compound annual growth rate (CAGR) of 70.7%. Over the same period, its net profit rose from RMB 5.8 billion to RMB 14.3 billion, a CAGR of 57.1%. Chery attributed the revenue growth primarily to dual expansion in both internal combustion engine (ICE) and new energy vehicle (NEV) sales, as well as continued overseas market growth, while profit growth was driven mainly by higher passenger vehicle sales and an optimized product mix.

According to its prospectus, in 2023, Chery was the only automaker among the world’s top 20 passenger vehicle companies to achieve sales growth exceeding 25% across all four categories: new energy vehicles, ICE vehicles, the Chinese domestic market, and overseas markets. In 2024, Chery’s NEV sales jumped 265% year-over-year, ICE vehicle sales grew by 29%, and both domestic and overseas sales rose by 55%, bringing total global sales to 2.295 million units — ranking Chery second among Chinese independent passenger car brands and eleventh globally.

In 2025, Chery’s momentum has continued. From January to August this year, the company reported total sales of 1.727 million units, up 14.5% year-over-year, with overseas exports reaching 799,000 units, a 10.8% increase. Sales under the Chery brand alone surpassed the one-million-unit mark for the first time, hitting a record high of 1.079 million units.

Since its founding in 1997, Chery has adhered to a “technology-driven enterprise” strategy. It was the first Chinese independent brand to surpass one million annual sales and has led Chinese passenger car exports for 22 consecutive years.

Chery has been “a little bit under the radar” as “everyone has been talking about BYD” in the past few years, Sino Auto Insights’ Founder and Managing Director Tu Le told. He added, however, that the company operates manufacturing plants in multiple countries and boasts strong export capabilities, enjoying particular popularity in the UK and Australian markets.

Nonetheless, Chery faces headwinds from rising global trade barriers — such as the U.S.’s 100% tariff on Chinese electric vehicles, Canada’s planned implementation of similar duties in October, and the European Union’s upcoming tariff of up to 45.3% by year-end. In response, Tu Le observed that Chery has effectively mitigated these risks through localized production in the Middle East and Southeast Asia, placing it in “a more favorable position” compared to peers that rely heavily on direct exports.