China’s CATL, the world’s top manufacturer of batteries for electric vehicles and a key part of Beijing’s drive to dominate the EV supply chain, has achieved a market valuation of $12.3bn in a trading debut as it seeks to expand production. 

Shares in the company rose 44 per cent — the maximum allowed for a stock debut in China — to Rmb36.20 on Shenzhen’s stock exchange on Monday. CATL sold a 10 per cent stake at Rmb25.14 a share in an initial public offering last week. 

Investors’ strong response to the group’s IPO underlines traders’ receptivity to the electric car story as  China pushes consumers and vehicles groups toward this standard. Beijing has set aggressive EV quotas on carmakers as part of its plan to reduce use of the combustion engine.