CATL’s HK stock jumps 35%, premium hits record high

Shares of Contemporary Amperex Technology Co. (CATL), a Chinese electric vehicle (EV) battery maker, briefly traded in Hong Kong at a record premium to its Shenzhen-listed shares after the company reported stronger-than-expected earnings.

This comes amid energy supply shocks that lifted demand.

Hong Kong-listed shares have rallied about 35% since last week’s earnings beat while the mainland shares rose roughly 16%, driving the premium to as high as 46% and past levels seen in July.

Morgan Stanley estimated a gap of about 10% would be reasonable for CATL, based on the midpoint of premiums for Taiwan Semiconductor Manufacturing Co. and BYD Co., implying current levels may be hard to sustain.

According to Bloomberg data, GigaDevice Semiconductor Inc. and China Merchants Bank Co. are among a small group of Hong Kong companies that trade at premiums to their onshore peers.

The premium widened even as Hong Kong’s broader market languished.

Market participants say CATL is increasingly viewed as a play on stronger-than-expected fundamentals and on energy diversification amid higher oil prices.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

CATL’s profit jump comes from more than EV batteries

Annual net profit rose 42% to 72.2 billion yuan 1. Higher margins from energy storage helped lift the result, adding to CATL’s energy diversification push 2.
Energy storage made up 15% of 2025 revenue, while battery sales volume in that unit climbed 29% 3.
CATL expects energy storage to move toward a 50:50 revenue split with the EV battery unit over time, widening its focus beyond electric cars 2.

A Hong Kong markup creates a rare A/H-share pricing gap

Among 152 dual-listed Chinese firms, Hong Kong shares usually trade below their mainland lines, often by more than 20% 4. CATL stands out from that pattern 4.
The H-share gap reached record territory in the mid-40% range, with CLSA citing a record H–A premium of 45% 5.
The Hong Kong listing aimed to fund overseas expansion and international business development 4. The elevated valuation suggests offshore investors prefer that line for exposure, though the cited sources do not pin down the drivers 4.