China Lowers Rates for First Time In Seven Months , CATL Jumps 12% In Hong Kong Listing

Li Chen
20 May, 2025
Hong Kong

Stock market indexes in China and Hong Kong advanced after the People's Bank of China delivered its first rate cut in seven months. 

The Hang Seng index soared 1.3%, and the mainland-focused CSI 300 index advanced 0.6% after the central bank cut its 1-year and 5-year rates. 

The People's Bank of China cut its 1-year loan prime rate by 10 basis points to 3.0% from 3.10%, and the 5-year loan prime rate by the same amount to 3.50%. 

The central bank last cut its lending rates by 25 basis points in October amid a push for a broad easing to support the target growth rate of 5%.

Earlier in the month, central bank governor Pan Gongsheng announced the central bank's commitment to lower rates and reserve requirement ratio to revive growth. 

China's central planners and policymakers stepped up efforts to support economic growth and ease pain for export-linked companies after the U.S. president announced unilateral import taxes on all countries, with the heaviest burden on Greater China. 

Despite the rollback in sky-high 115% tariffs for the next 90 days, as many as 150,000 small businesses in China are likely to suffer severe financial stress to adjust to a sharp fall in demand and a rebound in orders to ship in the next 90 days. 

 

China Indexes and Stocks 

The Hang Seng index  jumped 1.3% to 23,642.50, and the mainland-focused CSI 300 index rose 0.6% to 3,901.01. 

Contemporary Amperex Technology completed its HK$35.7 billion, or $4.6 billion, public offering in Hong Kong with an offer price of HK$263 per share. 

CATL's offering was the largest public offering in Hong Kong so far in 2025, and the company controls about 38% of the global market for batteries for electric vehicles. 

The company sold 136 million shares, including a 17.7 million share option for brokers, and retail investors acquired 7.5% of shares and global funds purchased the remaining 92.5%, according to a company filing with the Hong Kong Stock Exchange. 

The company's retail tranche of the public offering was oversubscribed by 102 times, according to local brokers in Hong Kong.  

The company's offering is the largest since Kuaishou Technology in February 2021 was priced at HK $115 per share and raised $5.3 billion.