Shares of Chery Automobile Co., one of China’s leading car exporters, jumped 11.2% in their Hong Kong trading debut Thursday after a US$1.2 billion IPO, in what is among the largest automotive listings in the city this year.

Chery priced its offering at HK$30.75 per share, the top end of its marketed range (HK$27.75–30.75). The stock opened at HK$34.20, signaling strong investor demand.

The institutional tranche of the IPO was oversubscribed 11.6 times, and the retail portion saw subscriptions 308×, underscoring robust interest across investor classes. Cornerstone investors committed about $587 million, including $190 million from China’s Enterprise Mixed-Ownership Reform Fund and $60 million from Hillhouse.

Chery plans to deploy 35% of IPO proceeds for R&D on new passenger vehicle models, and 25% toward developing next-generation vehicles over the next three years.

With this listing, Chery’s valuation approaches US$23 billion, marking it one of the largest auto sector IPOs in Hong Kong in 2025. As China’s largest exporter of branded passenger vehicles, the firm is positioning itself to deepen its reach into smart, electric, and international markets.

Challenges lie ahead: margin pressure, supply chain costs, and international trade policies could weigh. But today’s debut signals strong investor confidence in Chery’s future.