Chinese EV maker Seres taps Hong Kong IPO after 1,600% mainland rally

Chinese electric vehicle company Seres will begin trading in Hong Kong on Wednesday, following a massive public share sale that raised HK$14.3 billion, or $1.8 billion, according to Bloomberg.

The company, which already trades in Shanghai, priced its Hong Kong shares at HK$131.50 apiece, the top of its marketed range, but still 22% below its latest Shanghai closing price. More than 300 investors took part in the offering.

Shares of Seres surged in gray market trading on Tuesday, showing early demand ahead of the formal listing. This IPO adds more fuel to a city already having its strongest year for new equity deals since 2021.

In total, $51 billion has been raised through public offerings in 2025 so far. For Seres, listing in Hong Kong is about expanding its footprint outside the mainland, especially after the company’s stock posted a stunning 1,600% gain over five years in Shanghai.

Seres climbs from minivans to luxury EVs with Huawei’s help

Seres was founded in 1986, back when it only made springs and shock absorbers. Over time, it moved into motorcycles, then minivans.

Now, the company sells one of China’s top-selling luxury electric cars, the Aito M9, thanks to its partnership with Huawei Technologies.

The Aito brand, developed jointly by both companies, has helped Seres jump ahead of legacy brands like BMW and Mercedes-Benz in the Chinese luxury auto segment.

Even though the company has underperformed this year compared to the local benchmark, that didn’t stop its long-term rally.Seres has been listed in Shanghai since 2016, but this year’s intense price competition has weighed on all Chinese automakers.

“Seres has achieved success through its Aito brand in partnership with Huawei,” said Eugene Hsiao, head of China equity strategy at Macquarie Capital. “Investors looking for a premium auto proxy may be interested in the shares.”

The company’s Hong Kong move comes just as the city tries to rebuild its status as a financial hub. Paul Chan, Hong Kong’s Financial Secretary, said this week that the local economy grew 3.8% in the third quarter, driven by stronger exports, higher domestic spending, and surging tourism numbers.

That puts Hong Kong on track to hit its 2% to 3% full-year growth goal. On top of that, its wealth management sector is growing fast; private banking assets have jumped 15%, and Bloomberg Intelligence expects the city to overtake Switzerland this year as the world’s largest cross-border finance hub.

Beijing price war hits EV sales, BYD takes a hit

While Seres enjoys the spotlight, the rest of China’s electric vehicle sector is feeling pressure. The Beijing government has called on automakers to stop cutting prices to win sales.

The push is aimed at ending the aggressive competition that’s been squeezing margins and raising concerns about declining product quality.

The impact of this crackdown has been limited so far, but many expect the industry to rush sales through the end of the year, before tax incentives and subsidies start getting phased out.

One company that’s already feeling the pinch is BYD, the biggest EV maker in the world. In its latest earnings report, BYD said third-quarter net income dropped 33%, falling to 7.82 billion yuan or about $1.1 billion.

It also reported that total revenue fell 3% to 194.98 billion yuan, far short of estimates for 216 billion yuan. Vehicle deliveries dropped 1.8% from the previous year, with the company shipping 1.15 million new energy vehicles, including both fully electric and hybrid models.

In contrast, rivals like Geely Automobile and Chongqing Changan posted large sales gains in the same quarter, up 96% and 84%, respectively. Both are stepping up their push into EVs while the market remains volatile.

But even with that momentum, the industry remains shaky. China’s leaders are still trying to rein in the ongoing price war, worried that a race to the bottom could ruin the long-term health of the domestic auto market.

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