Guangzhou Automobile Group Co., a partner of Toyota Motor Corp. and Honda Motor Co. in China, rose 2.1 percent on its trading debut in Hong Kong today.
The shares, which opened at HK$9, reversed losses to close at HK$9.19. That compared with a 0.7 percent gain in the benchmark Hang Seng Index. Guangzhou Auto listed after completing a buyout of unit Denway Motors Ltd. last week.
Based on the ratio of closely held Guangzhou Auto stock exchanged for each share in Denway as part of the buyout, the shares are trading near the conversion price and in line with expectations, said Macquarie Securities Ltd. analyst Leah Jiang. The stock may benefit from Guangzhou Auto making Toyota’s Camry and Honda’s Accord sedans, among the top three best-selling cars in their segment in China, she said.
