- CATL rose about 8 percent to HK$284 in Hong Kong gray market trading as of press time.
- Hong Kong stock gray market trading is generally from 4:15-6:30 pm on the afternoon of the previous business day before the IPO.
CATL (HKG: 3750) rose in Hong Kong gray market trading today, ahead of its official start of trading there tomorrow.
At press time, CATL was up about 8 percent to HK$284 US in Hong Kong gray market trading, giving it a total market capitalization of HK$1.28 trillion, according to stock trading software Futu.
CATL launched its share offering for listing in Hong Kong on May 12, which lasted until May 15.
Its offer price was set at HK$263, at the upper end of its guided range, to raise about $4.6 billion.
CATL's official trading on the Hong Kong stock market will begin at 9 am on Tuesday, May 20, in lots of 100 H shares.
Hong Kong stock gray market trading refers to trading that does not take place in the open market, but only between clients and each other in the internal trading systems of some large brokerage firms.
The trading hours are usually 4:15-6:30 pm after the close of the previous business day before the official listing.
Trading in the gray market is operationally no different from normal trading, except that the volume of transactions in the gray market is not as high as the volume of transactions in the official listing.
The shares bought and sold in the gray market come from the shares held by those who received the placement.
Simply put, investors can sell their shares in the gray market one day in advance, while other investors can buy them one day in advance.
It is worth noting that the trading volume in the gray market is usually low and does not fully reflect the overall market situation.
So the price of the gray market is not something that can simply be taken as the price of the official listing the next day.
More on CATL
