Shanghai, December 3 (Gasgoo.com) China's top automaker SAIC Motor Corp (600104.SH) suspended its shares from trading today due to its "major asset reorganization," Dow Jones reported.
SAIC's board will hold a meeting before December 9 to discuss the asset reorganization plan, the car company said in a statement to the Shanghai Stock Exchange, adding that its shares will resume trading on the stock exchange market after a detailed plan on the reorganization is announced.
Media said the trading was suspended mainly for restructuring the shareholding of SAIC's joint ventures. SAIC now owns a 50% stake in each of its car-making joint ventures with General Motors (Shanghai GM) and Volkswagen AG (Shanghai VW) and controls the majority 50.1% of SAIC-GM-Wuling, a minivan venture.
Meanwhile, SAIC Motor and General Motors are set to expand their partnership beyond China by setting up a joint venture in India. The companies are expected to announce the joint venture tomorrow, a person familiar with the matter told Dow Jones today.
"We are in discussions with GM regarding how to expand our cooperation beyond the joint ventures in the China market," SAIC Motor spokeswoman Judy Zhu said, declining to comment on the share suspension.
