Contemporary Amperex Technology Co., Ltd. (CATL) saw its Hong Kong-listed shares decline 4.2% to HK$567 on Wednesday, underperforming a 0.9% drop in the Hang Seng Index.
Hungarian authorities suspended operations in three sections of CATL’s factory in Debrecen following biological monitoring tests that detected elevated nickel levels in nine employees. The shutdown remains in effect until safety deficiencies are addressed, according to local regulators.
The factory suspension coincides with new regulatory guidance issued by China’s Ministry of Commerce and two other government departments. The guidelines aim to regulate overseas competitive conduct and compliance standards for automotive sector companies, a move analysts view as a tightening of oversight over Chinese battery and electric vehicle-related firms expanding internationally.
The combined impact of the factory disruption and regulatory pressure triggered a broad sell-off among lithium battery-related stocks listed in Hong Kong, contributing to the broader market decline.
