TLDR: Chery’s Hong Kong IPO raised $1.2 billion with 308x retail oversubscription, proving investor confidence in Chinese auto execution. Meanwhile Mercedes-Benz buys into Geely’s autonomous driving stack for $188 million while Chinese brands hit 5.1% European market share, just 0.1 point behind Mercedes. The capital markets are voting with their wallets on who owns the future.
Capital Markets Vote With Their Wallets
When retail investors oversubscribe an IPO by 308 times, they’re not gambling. They’re recognizing execution. Chery Automobile’s Wednesday debut in Hong Kong saw the stock rise 11.2% after raising HK$9.1 billion. The allocation tells the strategic story: 35% goes to R&D, 25% to next generation vehicles. That’s a growth bet on the company that exported 1.14 million vehicles in 2024, maintaining 22 consecutive years as China’s export champion.
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