Shares of Chinese telecom, data center battery maker surge in Hong Kong debut

Shares of Shuangdeng Group soared on their Hong Kong trading debut Tuesday, underscoring the strong business momentum behind Chinese energy storage manufacturers.

Trading under the ticker 6960, Shuangdeng shares opened at HK$22.50 ($2.93), marking a 55% premium over their offer price of HK$14.51 per share, pushing its total market capitalization above HK$8 billion.

Ahead of the market opening, Yang Rui, chairman of Shuangdeng Group, said: “We are fortunate to be riding two huge waves in this turbulent era: one is the wave of artificial intelligence, and the other is the goal of overseas expansion. We will leverage our first-mover advantage in manufacturing and capitalize on demand in Southeast Asia and the Middle East to build a globally competitive enterprise.”

Shuangdeng primarily serves the big data and telecommunications sectors with its energy storage solutions. Its products comprise battery energy storage systems, including both lithium-ion batteries and lead-acid batteries. The lithium-ion lineup is centered on lithium iron phosphate (LFP) batteries, offered in both pouch (flexible packaging) and prismatic (square aluminum shell) formats. The lead-acid battery range comprises absorbent glass mat (AGM) batteries, gel batteries, and lead-carbon batteries.

Shuangdeng shipped 6.7 GWh of products in 2024, securing the top position globally among suppliers of energy storage batteries for telecommunication and data center applications. The company boasts a dominant presence in China, reportedly serving all of China’s top five telecom operators, 80% of the top ten self-owned data center operators and 90% of the top ten third-party data center providers.

Funds raised from Tuesday’s offering will predominantly fuel Shuangdeng’s overseas expansion. According to its filing with the Hong Kong Stock Exchange, Shuangdeng intends to allocate approximately 40% of the IPO proceeds to construct a lithium-ion battery production facility in Southeast Asia. About 35% will fund the establishment of a research and development center in its hometown of Taizhou, located in Jiangsu province, eastern China. The remaining funds will be invested in enhancing overseas sales and marketing efforts to broaden the company’s global footprint.

This approach reflects a broader trend among energy storage firms listing in Hong Kong, where capital raised – often in offshore currencies like Hong Kong dollars or US dollars – can be directly deployed for overseas factory construction, mergers and acquisitions, and other strategic investments without foreign exchange restrictions.

Consequently, the Hong Kong Stock Exchange continues to attract a growing number of Chinese battery energy storage companies amid robust investor demand.

Earlier this year, China’s CATL, the world’s leading battery manufacturer, raised around HK$35.6 billion ($4.6 billion) on its first trading day in Hong Kong, making it the largest global listing in 2025. Furthermore, other major energy storage players like Sunwoda, Hithium and Sungrow are also eyeing Hong Kong for their stock listings.