According to South China Morning Post, Chinese electronics recycler GEM is planning a secondary share listing in Hong Kong to raise funds for its global expansion. The company, which specializes in recycling batteries, electronic waste, and other materials, aims to issue H-shares on the Hong Kong Stock Exchange. This move is expected to enhance its overseas financing capabilities and strengthen its international brand image. GEM’s Hong Kong share issuance is reportedly scheduled for April, with the company’s shares rising 0.15% to 6.54 yuan in Shenzhen on Tuesday.
GEM’s decision to list in Hong Kong is driven by its global strategy to accelerate overseas business development. The company plans to consult relevant intermediaries to finalize the listing details, although significant uncertainty remains regarding the process.This listing follows GEM’s earlier move in June 2022, when it secured approval from China’s securities regulator to issue global depository receipts (GDRs) on the SIX Swiss Exchange. The Swiss listing allowed GEM to access overseas capital markets and expand its presence in the global nickel and battery-material sectors.
Founded in 2001 in Shenzhen, GEM is a leading enterprise specializing in recycling batteries, electronic waste, scrapped cars, and waste plastics. Including GEM, Chinese firms in the renewable and alternative energy sectors, are increasingly targeting international markets. As the world’s largest producer and exporter of electric vehicles (EVs), and lithium batteries, China dominates global exports with a 33% share in EVs, 24% in lithium batteries. However, this dominance has faced resistance from international markets. The US imposes tariffs of up to 100% on Chinese EVs and 25% on lithium batteries, while the EU introduced tariffs as high as 45.3% on Chinese EV imports in October 2024. GEM’s Hong Kong listing aims to mitigate these challenges by diversifying its funding sources and further establishing its global footprint amid an increasingly complex trade environment.
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