Battery maker's $1b investment to energize HK

Hong Kong becoming home to a research and development center of the world's largest manufacturer of electric vehicle batteries - mainland-based Contemporary Amperex Technology - will expedite its innovation and technology development, Financial Secretary Paul Chan Mo-po said.

CATL - with 37 percent of the global EV battery market share - has signed a memorandum of understanding to set up a research and development center at the Hong Kong Science Park.

Chan said CATL is making a good investment, which will also spur Hong Kong's growth in innovation and technology development. "The setup will bring about billion dollars worth of investment to Hong Kong, as well as over 500 jobs," he added.

The company will also achieve a "bigger and better" development on the global stage through Hong Kong, Chan said.

More than 30 overseas and mainland companies in the past year have already set up, or plan to be, in the city.

Founder and chairman of CATL Robin Zeng Yuqun said he is confident about the company's development in Hong Kong. "Hong Kong is a well-known world commercial hub with a comprehensive intellectual property protection system," Zeng said, adding that supportive policies for the innovation and technology sector are also its great advantage.

He said the company has over 18,000 employees and owns more than 22,000 patents, and will put more resources and efforts into the research and development of its products.

The Hong Kong branch will mainly focus on research and development and operating patents. It will make use of the free flow of information in the city to expand its business in the global market, Zeng said.

Secretary for Innovation, Technology and Industry Sun Dong said the signing shows "a vote of confidence in the city's status as an international financial center."

He added: "It also motivates the city to step forward to an international innovation hub."

Director of ACE Centre for Business and Economic Research Andy Kwan Cheuk-chiu said the CATL center will promote the development of science and technology and attract more talents to the SAR.

"The set-up of tech giants like CATL can introduce industry and bring more jobs, and thus attract more technology professionals to Hong Kong," he said, adding that the SAR will continue to attract more professionals as more large-scale technology companies set up shop here.

It is understood that CATL plans to list in the Hong Kong stock exchange and raise between US$5 billion (HK$39 billion) to US$6 billion next year - possibly becoming the largest new stock in HKEX in the past three years.

Kwan said if CATL goes public in the SAR, it will further consolidate Hong Kong's status as an international fundraising platform.

ayra.wang@singtaonewscorp.com