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Dongfeng Motor Corp would reactivate its Hong Kong listing plan this month after evidence that the mainland's car sector is recovering, the Shanghai-based Oriental Morning Post reported, citing the automaker.
The report did not say when the listing would take place. Dongfeng is seeking to raise US$500-600 million from its initial public offering (IPO).
This compared to a target of as much as US$1 billion last year when the automaker appointed investment banks to arrange for its Hong Kong IPO, the newspaper said.
Dongfeng won approval from China Securities Regulatory Commission at the end of last year to issue up to 2.86 billion H-shares for its IPO and would inject all its auto related assets into its listing unit, the newspaper added. Media reports said in January that Dongfeng had postponed its Hong Kong listing until the middle of this year amid soured investment sentiment towards the mainland's car sector and concerns that Dongfeng lacks control in its foreign joint ventures.
Officials at Dongfeng Motor were not available for comment.
Dongfeng has three car-assembling ventures, with Honda Motor Co. Ltd., Nissan Motor Co., and France's PSA Peugeot Citroen, as well as a car-parts venture and an engine venture with Honda. All are 50-50 joint ventures.
China's sedan sales for the first half rose 9.29 percent from a year earlier to 1.23 million units while sedan output was up 2.04 percent at 1.26 million units, the China Association of Automobile Manufacturers (CAAM) said.
Overall auto sales for the first half rose 9.35 percent year-on-year to 2.79 million units and auto output was up 5.15 percent at 2.82 million units.
From January to June, Shanghai Automotive Industry Corp. sold 403,800 units, Dongfeng Motor Corp sold 360,200 units, Changan Automotive Group sold 340,600 units and Beijing Automotive Industry Holding Co. sold 301,200 units, CAAM said.
(Shenzhen Daily August 2, 2005)
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