Guangzhou Auto seeks listing
By Jin Jing |
January 23, 2010, Saturday
|
Print Edition
Print Edition
GUANGZHOU Automobile Group is seeking a back-door listing in Hong Kong through its affiliate Denway Motors to strengthen international competitiveness.
Industry analysts said Guangzhou Auto became the latest Chinese car maker that's banking on capital markets to accelerate future development with rising sales and profits helping to appeal to investors.
Guangzhou Auto, which controls 38 percent of Denway, applied to Hong Kong's stock regulator on Tuesday for a share sale and plans to exchange its new shares for the affiliate's stock, according to Denway's filing.
The listing still needs approval from the Hong Kong regulator.
"The move may mark the beginning of Guangzhou Auto's group listing," said Xu Caihua, an auto analyst of Guodu Securities Co. "The Hong Kong market can help lift its brand awareness among international investors."
Vehicle sales in China last year jumped 46 percent to 13 million units, surpassing the United States as the biggest auto market for the first time.
"China's auto market reached a climax last year, paving the way for Guangzhou Auto to retain high optimum evaluation," Xu noted.
Earlier media reports said Guangzhou Auto planned a listing on both the mainland and Hong Kong stock markets in 2007, hoping to snap up 14?billion yuan (US$2 billion).
If the plan goes through, Guangzhou Auto would be able to challenge Shanghai Automotive Industry Corp as China's biggest listed car maker.
Guangzhou Auto, the Chinese partner of Toyota Motor Corp and Honda Motor Corp, last year agreed to form a venture with Fiat SpA and bought a stake into smaller sport-utility vehicle maker Changfeng Auto.
Zhang Fangyou, chairman of Guangzhou Auto, earlier said the car maker is pushing forward with development of self-branded vehicles, which may need 6.8 billion yuan.
Xu of Guodu Securities said Guangzhou Auto is still in a good financial position with last year's profits estimated to be 10 billion yuan.
Guangzhou Auto's sales rose 15 percent to 606,600 vehicles last year, making it the six-largest auto maker in China. "The company is expected to increase sales to 1.3 million units within three years," Xu said.
Industry analysts said Guangzhou Auto became the latest Chinese car maker that's banking on capital markets to accelerate future development with rising sales and profits helping to appeal to investors.
Guangzhou Auto, which controls 38 percent of Denway, applied to Hong Kong's stock regulator on Tuesday for a share sale and plans to exchange its new shares for the affiliate's stock, according to Denway's filing.
The listing still needs approval from the Hong Kong regulator.
"The move may mark the beginning of Guangzhou Auto's group listing," said Xu Caihua, an auto analyst of Guodu Securities Co. "The Hong Kong market can help lift its brand awareness among international investors."
Vehicle sales in China last year jumped 46 percent to 13 million units, surpassing the United States as the biggest auto market for the first time.
"China's auto market reached a climax last year, paving the way for Guangzhou Auto to retain high optimum evaluation," Xu noted.
Earlier media reports said Guangzhou Auto planned a listing on both the mainland and Hong Kong stock markets in 2007, hoping to snap up 14?billion yuan (US$2 billion).
If the plan goes through, Guangzhou Auto would be able to challenge Shanghai Automotive Industry Corp as China's biggest listed car maker.
Guangzhou Auto, the Chinese partner of Toyota Motor Corp and Honda Motor Corp, last year agreed to form a venture with Fiat SpA and bought a stake into smaller sport-utility vehicle maker Changfeng Auto.
Zhang Fangyou, chairman of Guangzhou Auto, earlier said the car maker is pushing forward with development of self-branded vehicles, which may need 6.8 billion yuan.
Xu of Guodu Securities said Guangzhou Auto is still in a good financial position with last year's profits estimated to be 10 billion yuan.
Guangzhou Auto's sales rose 15 percent to 606,600 vehicles last year, making it the six-largest auto maker in China. "The company is expected to increase sales to 1.3 million units within three years," Xu said.
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