Reuters (Beijing) - The state parent of SAIC Motor Corp , China's largest carmaker, plans to inject additional assets into its listed subsidiaries as it finalises its move to float all of its auto-related operations, Chinese media reported over the weekend.
Huayu Automotive Systems Co , which holds most of the group's auto parts businesses, and SAIC Motor both suspended trading in their shares late on Friday pending further announcements.
The parent company, Shanghai Automotive Industry Corp (Group), had already injected its core auto manufacturing assets into SAIC in late 2006 via a share placement, and will now shift its service and trading units into the firm, the Shanghai Securities Journal reported. It cited people with knowledge of the matter.
Huayu, which went public in 2008, will get more parts assets from its state parent, the newspaper said.
Many Chinese state firms, including Dongfeng Motor Group Co , have floated their major operating assets in an effort to streamline their operations and improve corporate governance.
SAIC Motor manufactures Buick, Chevrolet, Cadillac and Volkswagen brands in China through tie-ups with General Motors and VW.
The car company also builds Roewe and MG sedans.
