Chery selected JPMorgan Chase to work on the offering in late 2024, but is no longer involved.
One of the biggest listings of the year is gaining ground in Hong Kong without the help of Wall Street banks. An all-Chinese bank group is leading Chery Automobile’s planned Hong Kong initial public offering (IPO), which some experts believe might raise around US$1.5 billion. Other banks have decided not to participate.
According to some sources, Chery selected JPMorgan Chase to work on the offering in late 2024, but is no longer involved. They mentioned that JPMorgan cancelled the agreement before formally signing the mandate. Some other foreign banks also declined to work on the deal.
Global banks usually participate in significant share sales as advisors, underwriters, or similar roles. Bank of America and JPMorgan are leading the arranging side for Contemporary Amperex Technology’s possible US$5 billion offering, one of Hong Kong’s most anticipated transactions.
Chery, one of China’s leading auto exporters, worked with the Hong Kong offices of China International Capital (CICC), Huatai Securities, and GF Securities as joint sponsors on this listing. Chery was established in 1997 and offers automobiles under brands like Luxeed, Jetour, Exeed, iCar, and Chery.
International investment banks frequently face competition from Chinese competitors that offer less expensive funding, advice, and other services. In a recent case, the ride-hailing app filed IPO paperwork identifying GF Capital, ABCI Capital, and Huatai Financial Holdings of China as joint sponsors.
Some American banks have also been pickier about their transaction to safeguard earnings and stay clear of companies that might be exposed to US-sanctioned markets. One of the best-selling auto brands in Russia is Chery, is filling the gap left by international automakers after the invasion of Ukraine.
Chery did not respond to requests for comments on the IPO plans, and JPMorgan chose not to respond.
IPOS and secondary listings in Hong Kong raised about US$2.7 billion in 2025, up around 170% from the previous year. The bubble tea company Mixue Group raised $511 million early in March. Since then, its shares have increased by almost 150%.
This year’s other equity capital market transactions include BYD and Xiaomi raising US$11 billion through stock offerings.
Chery is a vital asset for Chery Holding Group, which also engages in real estate and financial services. The company stated that it will reduce its activities in Russia to lessen the danger of penalties.
It also states in its prospectus that as of the end of the previous year, they have stopped sales with Iran and Cuba, which are under sanctions.
Since they were discussing a private subject, the people who asked not to be named told Hong Kong IPO is still in the planning stages, and details like the timing and size might change.
Turkey’s industry ministry announced that Chery intends to set up a US$1 billion electric vehicle factory in Turkey with a local partner as part of its plan to expand globally, with an annual capacity of 200,000 vehicles.
Wall Street’s pullback from Chery’s IPO is due to the financial gap between the United States and China. Chery’s reliance on local underwriters shows a strategic retreat to safer shores, as the combination of congressional pressure, forced labor concerns, and unclear arrangements creates a “no-win” situation for banks.
Companies like Chery, trapped between regulatory risk and state ties, face a challenging uphill battle to attract international capital in geopolitical fragmentation.
Since 2020, the US-listed stocks of Chinese companies have underperformed the S&P 500 by 34%, and the average pricing of Hong Kong initial public offerings (IPOs) with US underwriters was 20% lower. As it moves forward without Wall Street, Chery is betting on a future with geopolitical boundaries and capital flows.