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Guangzhou Auto arm seeks listing in HK

GUANGZHOU Automobile Group is seeking a back-door-listing in Hong Kong through its affiliate Denway Motors.

Guangzhou Auto, which controls 38 percent of Denway, plans to list its H shares on the Hong Kong Stock Exchange and exchange its new shares for the affiliate's stock, according to Denway's filing today.

The ratio of H-shares exchanged for each Denway share will be determined after the Hong Kong bourse approves the listing.

"The listing through Denway would be an easier access for Guangzhou Auto to restrucure its assets and is helpful to lift its brand awareness among international investors," said Xu Caihua, an auto analyst from Guodu Securities Co.

Guangzhou Auto originally listed in 2002 but shares were later suspended because of China's flat vehicle sales and poor stock market. Vehicle sales in China last year jumped 46 percent to over 13 million units, beating the United States as the world's biggest auto market.

Earlier media reports said Guangzhou Auto originally planned a listing on both Hong Kong and mainland bourse, hoping to snap up a total of 14 billion yuan (US$2 billion). If it goes through, Guangzhou Auto would challenge Shanghai Automotive Industry Corp as the biggest listed car maker.


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