BAIC to Launch IPO in Hong Kong

Source: National Business Daily, ChinaScope Financial (Data)

+       XU Heyi, Chairman of Beijing Automotive Group (BAIC Group), said at the 2012 Summer Davos that its subsidiary, Beijing Automotive Industry Holding Co., Ltd. (BAIC), is planning to list in Hong Kong next year. BAIC is expected to raise roughly CNY 10 billion for the development of its passenger vehicle business.

+       In May 2007, BAIC Group was planning for an IPO in Hong Kong to raise USD 1 billion; however, it changed its plan to focus on the A-share market instead in March 2008.

+       In early September, China’s auto makers performed a crash test after the industry standard was updated. The two E-Series models of BAIC Motor received a 3-star and 2-star ratings, which shows that technologies and qualities of the brand still have room for improvement. In the June-August period, the company sold more than 2,000 E-Series models each month.

Beijing Automotive Group is once again preparing for an IPO, the proceeds of which will be used to develop the company’s own passenger car.

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