CATL Share Sale Pressures HK Premium, Boosting Popular Trade

A blockbuster share sale by Contemporary Amperex Technology Co. Ltd. is poised to further chip away at the unusually high premium on the company’s Hong Kong-listed shares, potentially bringing them closer in line with its Shenzhen stock, analysts said.

The $5 billion deal this week increases supply in Hong Kong, dilutes per-share value and expands scope for short selling, bolstering a popular hedge fund trade that wagers the gap will narrow against the mainland listing.