Although the rumor did not spread widely, CATL shares traded in Shenzhen plunged 6.66 percent at the close of trading.
In response to rumors that Contemporary Amperex Technology Co Ltd (CATL) consulted with US agencies about the possibility of sanctions against it, the Chinese power battery giant has denied it.
"Rumors circulating on the Internet that our company consulted with US agencies about the possibility of sanctions are false," the company was quoted by local media Cailian as saying.
Earlier rumors said that CATL (SHE: 300750) was seeking help from specialized agencies in the US to consult on the possibility of its being sanctioned by the US, according to the report.
Notably, we did not see that rumor earlier. Some of the information that can be searched so far points to a New York Times article from late last year.
The article claimed Beijing has given CATL lucrative subsidies, an exclusive market and lax regulations that have helped the battery giant become an industry leader.
China's growing dominance in the green supply chain has raised concerns in Washington, according to the article.
The New York Times article did not directly mention the possibility of sanctions.
Although the rumor did not spread widely, CATL shares traded in Shenzhen plunged 6.66 percent at the close. The stock was down close to the single-day limit of 10 percent at one point during the session.
Notably, South Korea-based market research firm SNE Research released data Monday showing CATL's installed global power cell capacity at 96.7 GWh in 2021, up 167.13 percent from 36.2 GWh in 2020.
This gives CATL a global market share of 32.6 percent, up 8 percentage points from 24.6 percent in 2020, and is the fifth consecutive year that CATL has held the position of the world's largest power cell maker.
