The Chinese electric vehicle sector has begun to tap offshore markets for more funding, with shares in EV maker Zeekr gaining 34 per cent on Friday in the biggest IPO in the US by a Chinese company since 2021.
In a sign of improving investor sentiment towards Chinese-linked stocks, the Hangzhou-based premium car brand, carved out of China’s privately held Geely group, raised $441mn in New York from the sale of 21mn American depositary shares. They were priced at the top of its range of $18 to $21 and closed at $28.26.
Zeekr debuted in the face of new trade barriers set to be imposed by the US and Europe on China-made cleantech. The Biden administration is expected to raise tariffs on Chinese EV imports from 25 per cent to 100 per cent on Tuesday. The European Commission is investigating electric car imports from China and is widely expected to raise tariffs in the coming months.