Chery resumes IPO plans as market rallies

Shanghai, July 21 (Gasgoo.com) China's largest home-grown automaker Chery Automobile Co has resumed preparations for an A-share initial public offering (IPO) because stock markets have recovered, the Shanghai Securities News reported today.

Chery Auto had applied for a domestic listing in June 2008 but the application was shelved amid a market slump as the global financial crisis struck home, the newspaper said, citing Chery's spokesman Jin Yibo.

Chery has resumed its preparations to go public as the country's securities regulator lifted its nearly 10-month ban on domestic IPOs due to a strong rebound in the stock market amid signs of economic recovery.

Jin did not provide Chery's financial details but said the automaker was qualified for a public listing helped largely by a firming auto market, though the company's R&D spending has reduced part of its profits. No timetable or details about the size of the IPO were given.

Meanwhile, Jin also confirmed that Chery Auto and Jianghuai Automobile Co (JAC), a van-maker also based in the eastern province of Anhui, had started to consolidate their assets. Before their possible merger, the two companies might cooperate first in the engine business.