Short bets against Contemporary Amperex Technology Co. Ltd.’s Hong Kong shares
have dropped sharply, with short interest falling to 15.4% of free float from
about 26% a week earlier, the lowest since December, according to S3 Partners.
The decline followed a $5 billion share placement that increased share
availability and lowered borrowing costs, while shorted shares fell to a
five-week low. The move allowed traders to unwind positions built amid a premium
to Shenzhen shares. Analysts including Morgan Stanley cited improving growth
visibility, particularly in energy storage and new battery technologies, with
most analysts maintaining buy ratings.
