China South Group's subsidiary, China South Automotive Industry holding Co.,Ltd, is preparing to go on the Hong Kong's stock exchange with 0.5 to 1 billion raised funds before the end of this year. The company has invited Citi group and Goldmansachs group as investment banks, and once it succeeds, vehicle funds of China South Group will be able to rise in capital market both at home and abroad.
According to President Yin Jiaxu, the collected funds will be used in assembling and R&D procedures of autos. South Auto is scheduled to produce heavy vehicle, special vehicle as well as auto parts in future.
It is reported that South Auto's assets are mainly combined into two parts, the 45.55% shareholding in Chongqing Chang'an and other shares in Baotou Heavy truckm Chong Tiema, Hebei Changan, etc, as well as shareholdings in 19 auto parts companies. South Auto possesses a capital volume of 17 billion yuan and a net asset of 4.7 billion yuan.
