Lantu Auto's Hong Kong Stock Market Debut: Introducing the Listing Model Faces a Liquidity Challenge

Author | Zhou Zhiyu

On March 19, Lantu Automotive officially listed on the Main Board of the Hong Kong Stock Exchange, becoming the first independent listed high-end new energy brand of a central state-owned enterprise in the Hong Kong stock market. Lantu’s stock price initially dipped but then rebounded. By midday, it closed at HKD 6.9 per share, down 8% from the opening price of HKD 7.5.

Lantu’s listing in Hong Kong adopted an introduction listing approach — no new shares issued, no fundraising. All listed shares came from the residual distribution to existing shareholders after Dongfeng Motor Corporation’s privatization and delisting. The advantage of this route is quick listing and no dilution effect, but it also means the absence of typical IPO price stabilization tools such as cornerstone investor lock-ups and greenshoe mechanisms.

More direct selling pressure comes from the index level. A Hong Kong investment banker analyzed that because Lantu has not yet been included in major index components, some global passive funds, after receiving their allocations, need to sell these “non-target holdings” either on the first day of trading or shortly after, creating certain sell-offs.

Meanwhile, Lantu has not yet been included in the Stock Connect program, so southbound funds—the most significant incremental buyers of Hong Kong stocks—cannot enter in the short term, further limiting buying support.

From the market environment perspective, overall trading sentiment in Hong Kong stocks has been cautious recently. The Hang Seng Index closed down 1.66% at midday, and the Hong Kong auto sector has been range-bound since the beginning of the year, adding uncertainty to Lantu’s initial pricing.

However, from a fundamental standpoint, Lantu’s operational data still shows strong growth momentum. From 2023 to 2025, the company’s sales volume increased from 50,300 units to 150,200 units, with a compound annual growth rate of 72.8%. Revenue rose from 12.75 billion yuan to 34.86 billion yuan. By 2025, net profit reached 1.02 billion yuan, turning profitable after losses, with a gross margin of 20.9%. As of the end of 2025, the company’s cash and cash equivalents stood at 7.972 billion yuan, indicating ample liquidity.

2026 is set to be a big year for Lantu’s product lineup. The company plans to launch four new models, all equipped with Level 3 intelligent assisted driving hardware. Among them, the Lantu Taisan Ultra has recently begun deliveries, and the Dreamer Home Champion Edition developed with Huawei has already been launched. In the second half of the year, a high-end MPV codenamed “Everest” will also be introduced. Whether this intensive product rollout can translate into sustained sales growth will be a key market focus moving forward.

For Lantu, the introduction listing is a ticket into the capital markets. The company can initiate placements or additional offerings for financing based on market conditions at any time. In the short term, the stock price pressure is more due to listing mechanisms and structural market factors. The real test for Lantu lies in whether it can use continuously improving operational performance to earn a valuation that matches its growth rate.

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