According to news on December 29, many Chinese companies involved in the electric vehicle industry have begun to set up offices in Hong Kong, hoping to use Hong Kong’s financial system to expand global business. So far, the total investment of these companies in Hong Kong has exceeded US$1 billion, and it has also created a large number of local job opportunities. CATL, the world's leading battery manufacturer, announced earlier this month plans to set up an international headquarters in Hong Kong, planning to invest approximately HK$1.2 billion (approximately US$154 million) and recruit 500 employees.
Xu Haidong, deputy chief engineer of the China Association of Automobile Manufacturers (CAAM), pointed out that Hong Kong's mature financial industry, free capital flow and status as the world's largest offshore RMB market provide Chinese electric vehicle companies with advantages that mainland banks cannot match.
Xu Haidong further explained: "China's four major banks are not yet able to directly meet the overseas needs of our automakers, including consumer auto loans, dealer financing or foreign direct investment in building factories. Chinese automakers are moving towards the international stage, which requires strong financial support. Hong Kong is undoubtedly an excellent starting point."
As sales of Chinese electric carmakers and related companies continue to grow in overseas markets, their pace of expansion is also accelerating. BYD announced last week that it would build an electric vehicle factory in Hungary, its first production base in Europe. At the same time, other Chinese automakers such as SAIC Motor and Great Wall Motors are also actively exploring the European market and seeking localized production.
Other companies that have recently opened offices in Hong Kong include Hezhong New Energy Vehicle Co., Ltd. (which owns Nezha Automobile), autonomous driving technology company Black Sesame Intelligence, and Beijing Horizon Robotics Technology R&D Co., Ltd. According to the Office of Key Enterprises in Hong Kong, so far, Chinese electric vehicle-related companies have committed to investing HK$8.6 billion (approximately US$1.1 billion) and plan to hire 1,300 local employees.
CATL and Hezhong New Energy are also considering listing or secondary listing in Hong Kong. BYD and Geely Automobile Holdings Ltd. are already listed on the Hong Kong stock exchange, with the latter being a listed subsidiary of Hangzhou-based Zhejiang Geely Holding Group Co.
In addition, the China Association of Automobile Manufacturers is planning to set up an overseas new energy research center in Hong Kong, which will also serve as a service center for member companies.
In addition to its economic appeal, Hong Kong, as a left-hand driving region, has unique market value for Chinese automakers when launching right-hand-drive models. For example, Xpeng Motors and Geely's Ji Krypton brand are actively introducing the first right-hand drive car into the Hong Kong market.
Hong Kong is also of strategic importance to China's large state-owned automaker SAIC Motor. Chen Gang, director of international brand sales of SAIC, said the company sells electric and plug-in hybrid right-hand drive models under the MG Motor and Maxus brands in Shanghai, and sees Shanghai as a stepping stone into Southeast Asia. Major emerging electric vehicle markets such as Indonesia, Malaysia and Thailand are also right-hand drive.
Chen Gang also said: "Although the Hong Kong market is limited in size, its strategic position is of great importance to us. We regard Hong Kong as a bridgehead into Southeast Asia and a window to showcase our products and brands."