4 Asian Legal Business | October 2024 Briefs In the first three quarters of 2024, U.S. capital markets led global activity, with the Nasdaq and New York Stock Exchange topping the charts for IPOs and funds raised. By the end of September, the U.S. market saw 98 IPOs, raising $24.1 billion, nearly 10 percent of which was from Chinese firms. According to Wind data, 24 Chinese companies listed in the U.S. during the first half of the year, raising a total of $2.2 billion. Chinese EV companies and their supply chain partners have been particularly active. The global EV market’s expansion has driven an intense need for funding. In May, Zeekr, a premium EV brand under Geely, listed on the NYSE, raising approximately $441 million, marking the second-largest U.S. IPO by a Chinese company this year. In September, XCharge, a provider of EV charging equipment and energy solutions, also went public on Nasdaq. Notably, Zeekr’s IPO came only three years after the brand was launched in early 2021, setting a record for the fastest IPO by a Chinese EV company. A report by Frost & Sullivan highlighted Zeekr as one of the fastest-growing high-end EV brands in China in terms of deliveries. Additionally, Frost & Sullivan forecasts that global installations of DC fast-charging stations will surge from 2.7 million units in 2024 to approximately 10.7 million by 2028, with a compound annual growth rate of 41.8 percent. According to 2023 sales EV supply chain firms eye U.S. listings 中国新能源车及产业链企业青睐赴美上市 data, XCharge is already a leading high-power charger supplier in Europe. Davis Polk was involved in both the Zeekr and XCharge IPOs. The lead counsel, He Li, partner and co-head of Davis Polk Asia (ex-Japan), notes that the EV sector’s rapid growth and fierce competition require companies to continually enhance technology, scale production, and establish global sales and service networks—all demanding substantial capital. Consequently, Chinese EV firms and their supply chain partners are actively seeking financing to expand capacity, invest in R&D, and support global market penetration. “Listing in the U.S. offers unique advantages for these firms,” says He. “The U.S. stock market is home to industry leaders like Tesla, providing a strong benchmarking and visibility platform for Chinese firms, attracting global investor attention and trust.” Furthermore, he emphasizes the liquidity of U.S. markets and the mature, diverse investor base, which provides substantial capital support. “Listing in the U.S. can also enhance a company’s international visibility, fueling its global expansion efforts.” According to He, Davis Polk is currently assisting several Chinese EV and related companies preparing for U.S. IPOs, reflecting the strong interest in accessing American capital. However, BIG STORY China’s electric vehicle (EV) makers and producers within its supply chain are experiencing robust growth. However, financing at home remains challenging for these companies, prompting a gradual shift toward the more favorable U.S. capital markets. By Charlie Wu 中国的新能源车及上下游市场发展势头良好。然而，此类企业在中国境内融资仍 面临困难，他们正逐渐转向更具优势的美国资本市场。 作者：吴卓言
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