Investor Flags Concerns Over Limited Free Float in CATL’s Hong Kong Listing

Contemporary Amperex Technology Co. Ltd. (CATL), the world’s leading battery manufacturer, recently completed the largest stock listing of 2025 with a debut on the Hong Kong Stock Exchange that raised HK$41 billion (approximately $5.2 billion), Bloomberg reports.

While the listing was met with enthusiasm—CATL’s shares surged 16% on their first day of trading—some market observers have raised concerns about the structure of the offering.

David Webb, a well-known Hong Kong-based investor and market commentator, has cautioned that the actual free float of CATL’s shares in the city is limited. In a post on his website, Webb highlighted that Hong Kong-listed shares account for just 3.4% of CATL’s total issued shares, most of which are primarily traded in Shenzhen. Of the Hong Kong tranche, nearly half—77.46 million shares—are subject to a lock-up period that prevents them from being sold until November 19.

According to Webb, the top 25 shareholders in the Hong Kong offering collectively hold nearly 70% of the available stock. This level of concentration, he warned, significantly reduces the volume of shares freely available for trading, increasing the risk of price volatility.

“When a small number of investors hold the majority of a company’s tradable shares, even modest trading activity can have an outsized impact on the stock’s price,” Webb noted.

Such concerns are typically monitored by Hong Kong’s Securities and Futures Commission (SFC), which issues alerts when shareholding becomes overly concentrated. Regulatory authorities emphasize that a narrow free float can amplify market movements, affecting transparency and price stability.