By Jason Chau
Chinese battery parts maker Shenzhen Senior Technology Material soared in its Hong Kong trading debut, signaling continued investor confidence in China's booming battery industry.
Shares of Shenzhen Senior Technology, which raised as much as 1.34 billion Hong Kong dollars, equivalent to $171.0 million, in its listing surged as much as 49% above its offering price of HK$8.98 in early Tuesday trade, before paring some gains to last trade 33% higher.
Founded in 2003, the company produces separators, a key component of lithium-ion batteries which have become one of China's major exports as the country has emerged as a global leader in battery technology and dominates the related supply chain. It counts industry giants including LG, Samsung Electronics, CATL and BYD as its clients.
The firm has benefited from the rapid adoption of electric vehicles in renewable energy storage globally, supported by explicit policy backing from Beijing. However, an oversupply of separators at home and the resulting price war have pushed it to increasingly focus on overseas expansion as a growth driver.
The company is also listed in Shenzhen, where shares were last trading 5.8% lower.
Write to Jason Chau at jason.chau@wsj.com