Great Wall suspends trading pending clarification of BMW reports
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BEIJING, Oct 12 — Great Wall Motor Co, China’s biggest SUV maker, halted trading in its Hong Kong shares after they surged on media reports the company plans a tie-up with BMW AG.
Trading will be suspended pending clarification of press articles, the company said in a statement.
The stock jumped 14 per cent yesterday after www.iautodaily.com, a Chinese website, reported Great Wall and BMW will set up a joint venture in China and are selecting a venue to build a manufacturing plant.
A BMW executive familiar with the matter told Reuters the report was “generally true”.
Brilliance China Automotive Holdings Ltd., which makes cars in a venture with BMW, rebounded 4.9 per cent at 10:01am in Hong Kong after falling 2.1 per cent yesterday.
Any BMW tie-up with Great Wall is likely to produce vehicles under a new brand, rather than under the German marque, according to Credit Suisse Group AG, which raised its target price on Brilliance after record sales volume.
Great Wall, which doesn’t have any carmaking partners, didn’t make an immediate comment on the report yesterday, while BMW also declined to immediately comment.
Great Wall’s Shanghai shares have been suspended from trading since late last month. — Bloomberg