JPMorgan has put forth a recommendation to acquire the A-shares of Contemporary Amperex Technology Co. Limited (CATL), which are listed on the Shenzhen Stock Exchange, and concurrently divest from its H-shares traded in Hong Kong. The rationale behind this advice stems from the imminent expiration of share sale restrictions imposed on certain pivotal early investors.

In a detailed report, JPMorgan's sales and trading division elucidated that, commencing November 19, the cornerstone investors who participated in CATL's Hong Kong initial public offering (IPO) in May will gain the liberty to offload their stakes. This development could potentially unleash approximately 50% of CATL's H-share free float into the market. The report further underscored that the relaxation of these share restrictions might emerge as a pivotal catalyst in reversing the existing premium of CATL's H-shares relative to its A-shares.