Key Tesla supplier CATL rose 13% in its Hong Kong trading debut on Tuesday morning. The world's largest battery maker filed to go public in Hong Kong earlier this year, primarily to fund its European expansion.

Shares of CATL, a key supplier to Tesla Inc (NASDAQ: TSLA ), surged over 9% in early trading, building on Tuesday’s impressive 16% jump, which marked one of the strongest debuts for a major listing in recent years. The rally reflects strong investor confidence in CATL’s global expansion plans and its dominant position in the EV battery market.

Strategists at UBS AG noted that while the overall valuation gap between mainland and Hong Kong markets is expected to persist, select stocks like BYD and China Merchants Bank Co. are attracting a premium due to their perceived quality and appeal among global investors.

Shares in China’s Contemporary Amperex Technology (CATL), the world’s largest electric vehicle battery maker, have surged as much as 18% on its first day of trading in Hong Kong, shrugging off geopolitical uncertainties.

CATL, which supplies batteries to global automakers such as Tesla, will start taking investor orders from Monday, it said in a Hong Kong exchange filing. The company plans to sell a total of 117.89 million shares for a maximum price of 263.0 Hong Kong ...