J.P. Morgan recommends buying Ningde era A shares and selling its H shares.

J.P. Morgan believes it is advisable to buy shares of CATL listed in Shenzhen and sell its shares listed in Hong Kong, as some early key investors are facing impending restrictions on selling their stock. The bank's sales and trading department noted in a report that starting from November 19, cornerstone investors who participated in the May Hong Kong listing of the Chinese battery manufacturer will be able to sell their shares, potentially releasing nearly 50% of CATL's H-shares into the market. The report stated that the lifting of these restrictions could become a key catalyst in reversing CATL's H-shares premium over its A-shares. Since its listing six months ago, CATL's H-shares have surged by 116%, while during the same period its A-shares have only risen by 60%. Data shows that, after adjusting for exchange rate factors, CATL's H-shares are currently trading at a premium of about 25% compared to its A-shares, which is rare as most companies listed in both locations usually have A-shares trading at a premium over H-shares.