By Sherry Qin


Seres Group's shares fell sharply in their Hong Kong trading debut, following the Chinese automaker's lackluster third-quarter results and a broader selloff sparked by Wall Street's losses overnight.

Seres's shares declined 4% on early Wednesday from its listing price of 131.50 Hong Kong dollars. The Chongqing-based company, which is already listed in Shanghai, raised 14.28 billion Hong Kong dollars in gross proceeds, equivalent to US$1.84 billion, by issuing 108.6 million shares.

Seres, which started as an assembler of budget minivans, has transformed into an electric-vehicle maker, leveraging its partnership with tech giant Huawei Technologies for in-car software and assisted driving. Its luxury EV brand, Aito, is one of the most popular high-end EV brands in China.

Its 2024 revenue more than quadrupled to 145.1 billion yuan, equivalent to $20.37 billion. Seres also turned profitable last year, reporting net income of 5.9 billion yuan.

However, Citi recently downgraded Seres's Shanghai-listed stocks to neutral from buy, after its third-quarter profit came in below market consensus due to a decline in operational expenditure efficiency.

"Seres's golden age could be coming to an end from early 2026," as it is entering the low season for car sales in first-quarter with increased downside risks on margin trends and strong competition from its peers, Citi analysts said in a note.

Separately, chief executives of Wall Street banks warned of a market correction of more than 10% over the next two years at an investment summit in Hong Kong on Tuesday, sending U.S. stocks lower overnight.

Hong Kong stocks tracked Wall Street's losses, with the Hang Seng Index shedding 0.8% and the Hang Seng Tech Index dropping 1.6% in morning trading Wednesday.


Write to Sherry Qin at sherry.qin@wsj.com


(END) Dow Jones Newswires

11-04-25 2230ET