Hong Kong-listed shares of CATL sink 8% as lockup expiry triggers profit-taking

The Hong Kong-listed shares of China’s CATL, the world’s largest battery maker, fell as much as 8.75% Thursday as investors sought to lock in profits, following the expiry of a six-month sales restriction on about 77.5 million shares held by early stakeholders.

The 23 cornerstone investors include Sinopec HK, Kuwait Investment Authority and UBS Asset Management, according to the company’s prospectus.

CATL’s IPO in May raised HK$35.7 billion ($4.6 billion) according to a company filing, reportedly making it the largest offering this year globally, as investors bet on the company’s ability to ride the boom in electric vehicles. CATL shares on the Shenzhen stock exchange were also down 2.59%.

CATL’s shares were last trading 6.56% lower.

Hong Kong’s Hang Seng Index reversed course to fall 0.47%, while the mainland CSI 300 was down 0.32%.

Other markets across the region also rose, boosted by a rally in chip shares after Nvidia‘s stronger-than-expected earnings and bullish forecast appeared to reinforce confidence in the global AI trade.

Shares of the chip giant jumped more than 4% in extended trading after its fiscal third-quarter earnings beat earnings and revenue expectations. The AI chip darling also gave a stronger-than-expected fourth-quarter sales forecast, with CEO Jensen Huang saying demand for its current-generation Blackwell chips is “off the charts.”

Japan’s benchmark Nikkei 225 index pared earlier gains to close 2.65% higher at 49,823.94, while the Topix index added 1.66% to 3,299.57.

Chip-related stocks rallied on the index as investors cheered Nvidia’s quarterly report, with tech conglomerate SoftBank closing 1.89% higher, after skyrocketing as much as 8% earlier in the session. Semiconductor equipment maker Tokyo Electron soared 5.31%, Lasertec added 6.17%, and chipmaker Renesas Electron pared gains to trade 1.7% higher.

Yields on 30-year Japanese government bonds reversed course to trade flat after hitting a record high of 3.375%. Those on the 20-year government bond rose more than 3 basis points to 2.853%, the highest level since 1999, while the 10-year bond yield rose 3.6 basis points to 1.799%, the highest level since 2008.

South Korea’s Kospi index advanced 1.92% to close at 4,004.85, and the small-cap Kosdaq added 2.37%. The upbeat investor sentiment also extended to South Korean memory chip makers, with SK Hynix trimming earlier gains to end 1.6% higher, while Samsung Electronics advanced 4.25%.

Australia’s ASX/S&P 200 continued gains, adding 1.24% to 8,552.7.

Taiwan’s Taiex rose 3.18%. Shares of Nvidia chips manufacturer TSMC on the index advanced more than 4%, while Hon Hai Precision Industry — also known as Foxconn, and supplier to Nvidia — climbed 3.28%.

India’s Nifty 50 rose 0.39%, while the Sensex index was up 0.4%.

U.S. equity futures were higher in early Asian hours after Nvidia’s upbeat guidance, which likely lifted investor sentiment around the AI trade, following recent sessions that reflected fears about elevated valuations, debt financing, and potential chip depreciation.

“Nvidia’s numbers remain extremely strong now, but there are inevitably questions whether Huang’s company has already reached its high-water mark in terms of growth and market share,” said David Russell, TradeStation’s global head of market strategy.

Overnight, the S&P 500 gained 0.38% to close at 6,642.16, snapping a four-day losing streak, while the Nasdaq Composite advanced 0.59% to settle at 22,564.23. The Dow Jones Industrial Average climbed 47 points, or 0.1%, to finish at 46,138.77.

— CNBC’s Sean Conlon and Pia Singh contributed to this report.