China’s CATL files for Hong Kong listing

Good morning and welcome back. Hong Kong could be due for its largest listing in years — more on that below. Plus:

• Dozens of PwC China partners step aside

• Taiwan and TSMC rush to head off Trump’s tariff threat

• China unveils ‘silver trains’ for elderly tourists

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CATL, the world’s largest electric vehicle battery maker, has filed an application for a secondary listing in Hong Kong, in what is expected to be the city’s largest stock offering since 2021.

CATL’s listing has been long awaited in Hong Kong. The battery maker is one of several Chinese companies expected to list in the territory this year, with analysts expecting a $20bn revival in activity.

One person familiar with the matter said that CATL hoped to raise up to $7bn if market conditions were optimal.

The Shenzhen-listed company has appointed JPMorgan, Bank of America, China’s CICC and China Securities International as lead banks. It also appointed Goldman Sachs, Morgan Stanley and UBS to work on the deal.

The US banks are involved despite CATL having last month been added to a US blacklist of companies deemed to be working with China’s military, a designation CATL said was “a mistake”.

The surge in Hong Kong listings could boost the city’s reputation as a leading destination for capital raising, after years of thin deal flows. But Gary Ng, a senior economist at Natixis, told the FT: “It is too early to say Hong Kong is back.” Read the full story.

Here’s what else we’re keeping tabs on today:

• Economic data: India reports CPI inflation figures for January.

• Results: SoftBank, Sumitomo Metal Mining, Yamaha Motor Company and Commonwealth Bank of Australia report earnings.

Five more top stories

1. Dozens of PwC China partners have left their roles in recent months in the wake of a ban over its audit of failed property developer Evergrande. The firm’s mainland China entity disclosed to a finance ministry database of certified public accountants in December and January that 66 people were “no longer partners”, though it is unclear if they have left the firm.

2. Israel’s Prime Minister Benjamin Netanyahu said he had instructed his military to mass forces around the Gaza Strip and threatened to resume “intensive fighting” against Hamas if the Palestinian militant group failed to release Israeli hostages by midday on Saturday. Meanwhile at an awkward appearance in the Oval Office with Jordan’s King Abdullah yesterday, Donald Trump doubled down on his plan for Gaza to be emptied of Palestinians and for the US to take over the besieged territory.

3. Russia has released an American teacher from detention in a move the White House described as a show of “good faith” that would help talks to end the war in Ukraine. Donald Trump’s special envoy Steve Witkoff flew to Moscow on his private jet yesterday to negotiate the deal and secure the return of Marc Fogel, who has been detained in Russia since 2021.

4. Trump has ordered the Department of Justice to halt the enforcement of a US anti-corruption law that bars Americans from bribing foreign government officials to win business. The order marks one of the boldest enforcement policies issued by the Trump administration, potentially undermining a critical tool in cracking down on individual as well as corporate misconduct. Here are more details.

• ‘Trump trades’ misfire: Bets on a stronger dollar and higher bond yields have backfired this year as investors take a more bearish view on the economic fallout from the new US administration’s global trade war.

• More US news: Jay Powell has defended the Federal Reserve’s authority over US monetary policy, as he vowed to avoid wading into politics despite calls from the White House to cut borrowing costs.

5. Indonesia’s government agencies are rushing to cut costs following President Prabowo Subianto’s call to free up funds for his free lunch programme and other big-ticket initiatives. Prabowo’s $19bn austerity drive goes far beyond eliminating extravagances, even targeting office supplies and air conditioner use.

News in-depth

While governments and companies worldwide are rushing to adjust to Donald Trump’s attack on global trade, few have as much at stake as Taiwan and its flagship chip manufacturer TSMC. The US president’s complaints threaten the top chipmaker’s business model and strike at the heart of the country’s sense of security.

We’re also reading . . .

• Trump vs the courts: The US judiciary poses the ultimate test of whether the president will break the system, writes Edward Luce.

• Weight-loss drugs: Should they be given to children? Our Big Read today explores the brewing battle over how to treat childhood obesity.

• A quiet AI revolution: Lawyers, bankers and many other professionals are now using chatbots to communicate, some without company oversight, writes Sam Joiner.

Chart of the day

China will launch a network of “silver trains” for elderly tourists as part of a plan to unleash the spending power of one of the world’s fastest-ageing populations. The project comes amid wider ambitions to develop a “silver economy” in China following years of declining birth rates.

Take a break from the news . . .

HTSI has pulled together 17 Valentine’s Day gift ideas — without the cliché.