Baker McKenzie has acted as the Hong Kong and US legal adviser to Chery Automobile Co., Ltd. (“Chery Automobile”) on its successful global offering and listing on the Main Board of the Hong Kong Stock Exchange. The offering is expected to raise approximately USD 1.174 billion (or approximately USD 1.35 billion if the over-allotment option is fully exercised), making it the largest automotive IPO in Hong Kong this year. The company’s H shares (stock code: 9973) commence trading today.
Chery Automobile is the second largest Chinese domestic brand passenger vehicle company, and the 11th largest passenger vehicle company globally. Proceeds from this offering will be used for investment in research and development, market and production expansion, and working capital and general corporate purposes.
This deal marks the second record-setting transaction where Baker McKenzie has supported Chery Automobile within the last 18 months. In April 2024, the Firm advised Chery Automobile on its joint venture agreement with EV Motors for the assembly, sales and distribution of vehicles in Spain, making Chery the first Chinese company in the sector to open a factory in Europe.
The deal team, comprising lawyers from Baker McKenzie and FenXun, was led by Wang Hang, partner and co-head of Baker McKenzie’s China Capital Markets Practice. The core team members included Partners Yolanda Zheng from FenXun and Sheng Chen* from Baker McKenzie; Senior Counsel Rachel Wang from FenXun; Senior Associates Daisy Chen and Phoebe Wang and Associate Helen Liu from Baker McKenzie; and Associates Serena Shao, Robin Weng, Gao Xin, Xiaoping Xu, and Yaqin Liu from FenXun. FenXun, a premier Chinese law firm, established a joint operation office with Baker McKenzie in China under the name Baker McKenzie FenXun in 2015.
Commenting on the deal, Wang Hang said: “We greatly value the opportunity to have assisted Chery Automobile in another landmark transaction. This deal not only underscores Chery Automobile’s strong market position and provides the company with new funding to support its future growth, but also demonstrates our ability to help clients navigate complex transactions and achieve commercial success.”
“Hong Kong continues to serve as a crucial springboard for Chinese companies seeking capital and international expansion. We look forward to continuing to bring our strong local and international capital markets capabilities to the table and supporting our clients in their future transactional and fundraising activities,” Wang Hang added.
China International Capital Corporation Hong Kong Securities Limited, Huatai Financial Holdings (Hong Kong) Limited, GF Capital (Hong Kong) Limited, GF Securities (Hong Kong) Brokerage Limited acted as joint sponsors and joint sponsor-overall coordinators in this deal. They also acted as overall coordinators, joint global coordinators, joint bookrunners and joint lead managers, along with CLSA Limited.
Baker McKenzie is one of the leading firms for complex transactions, providing strategic advice on deals involving the world's leading financial institutions and multinational companies. The Firm regularly advises target companies, offerors, selling shareholders and financial advisers on the acquisition and disposal of companies listed on stock exchanges in key major financial centers, as well as issuers on their proposed listing and fundraising activities in different jurisdictions. With many of its lawyers enjoying established working relationships with local regulators in Hong Kong and other key markets, the Firm is well-positioned to guide clients through every stage of the process — providing valuable insights on regulatory developments that may affect the value and feasibility of cross-border transactions, as well as on ongoing compliance matters. The team also assists listed companies in the restructuring of shareholdings, the use of stock as consideration, and the execution of block trades. Moreover, the team has extensive experience in advising clients on cross-border capital fundraising through various schemes, including the Shanghai-London Stock Connect and the China-Switzerland Stock Connect.
Chery Automobile is the second largest Chinese domestic brand passenger vehicle company, and the 11th largest passenger vehicle company globally. Proceeds from this offering will be used for investment in research and development, market and production expansion, and working capital and general corporate purposes.
This deal marks the second record-setting transaction where Baker McKenzie has supported Chery Automobile within the last 18 months. In April 2024, the Firm advised Chery Automobile on its joint venture agreement with EV Motors for the assembly, sales and distribution of vehicles in Spain, making Chery the first Chinese company in the sector to open a factory in Europe.
The deal team, comprising lawyers from Baker McKenzie and FenXun, was led by Wang Hang, partner and co-head of Baker McKenzie’s China Capital Markets Practice. The core team members included Partners Yolanda Zheng from FenXun and Sheng Chen* from Baker McKenzie; Senior Counsel Rachel Wang from FenXun; Senior Associates Daisy Chen and Phoebe Wang and Associate Helen Liu from Baker McKenzie; and Associates Serena Shao, Robin Weng, Gao Xin, Xiaoping Xu, and Yaqin Liu from FenXun. FenXun, a premier Chinese law firm, established a joint operation office with Baker McKenzie in China under the name Baker McKenzie FenXun in 2015.
Commenting on the deal, Wang Hang said: “We greatly value the opportunity to have assisted Chery Automobile in another landmark transaction. This deal not only underscores Chery Automobile’s strong market position and provides the company with new funding to support its future growth, but also demonstrates our ability to help clients navigate complex transactions and achieve commercial success.”
“Hong Kong continues to serve as a crucial springboard for Chinese companies seeking capital and international expansion. We look forward to continuing to bring our strong local and international capital markets capabilities to the table and supporting our clients in their future transactional and fundraising activities,” Wang Hang added.
China International Capital Corporation Hong Kong Securities Limited, Huatai Financial Holdings (Hong Kong) Limited, GF Capital (Hong Kong) Limited, GF Securities (Hong Kong) Brokerage Limited acted as joint sponsors and joint sponsor-overall coordinators in this deal. They also acted as overall coordinators, joint global coordinators, joint bookrunners and joint lead managers, along with CLSA Limited.
Baker McKenzie is one of the leading firms for complex transactions, providing strategic advice on deals involving the world's leading financial institutions and multinational companies. The Firm regularly advises target companies, offerors, selling shareholders and financial advisers on the acquisition and disposal of companies listed on stock exchanges in key major financial centers, as well as issuers on their proposed listing and fundraising activities in different jurisdictions. With many of its lawyers enjoying established working relationships with local regulators in Hong Kong and other key markets, the Firm is well-positioned to guide clients through every stage of the process — providing valuable insights on regulatory developments that may affect the value and feasibility of cross-border transactions, as well as on ongoing compliance matters. The team also assists listed companies in the restructuring of shareholdings, the use of stock as consideration, and the execution of block trades. Moreover, the team has extensive experience in advising clients on cross-border capital fundraising through various schemes, including the Shanghai-London Stock Connect and the China-Switzerland Stock Connect.
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