Gasgoo.com (Shanghai January 30) - Shanghai-based Chinese dealership network Yongda Group is planning to enter the Hong Kong Stock Exchange, jrj.com.cn reported today, quoting a story appearing in Hong Kong-based daily Ming Pao. The network, one of the largest on the Chinese mainland, is planning to make an initial investment of $500 million to $600 million for the new venture.
Yongda's core business revolves around its network of 4S dealerships, which specialize in automobile sales, maintenance, auto part sales and information services. The company's network covers Shanghai and Beijing, as well as Fujian, Shanxi, Zhejiang, Jiangsu, Hainan and other provinces. Yongda's key brands include BMW, Audi, Porsche, Volvo, GM, Toyota and VW.
Yongda originally planned to list A-shares in China, but abandoned the plan due to a complicated application process and the fact that rival companies, such as Zhongsheng and Baoxin Auto, managed to obtain stellar results in Hong Kong. Yongda will be reportedly using the services of HSBC and UBS to enter the market. It is expected to be listed later this year.
