FAW Group may seek group listing in Shenzhen

Shanghai, August 18 (Gasgoo.com) Chinese auto giant FAW Group may seek a group listing through its Shenzhen-listed FAW Car Co and issue new shares worth tens of billions of yuan, Shanghai Daily reported today.

FAW Group, China's second biggest automaker (after SAIC), has hired UBS Securities Co as its adviser. Major assets will involve stakes in its ventures with Germany's Volkswagen and Audi, and Japan's Toyota Motor and Mazda Motor.

FAW's IPO plan was shelved in mid-2007 due to a poor market environment. FAW is considering another listing on the Hong Kong stock exchange. Shares of FAW Car had grown 15% since May to 17.61 yuan ($2.6) before trading was suspended yesterday.

The long-awaited listing plan came at a time when the central government is restructuring major state-owned companies and encouraging them to list core-assets in an effort to create globally competitive firms.

FAW Group owns 22 subsidiaries, including four listed units, and has stakes in another 14 companies. FAW sold 862,800 vehicles in the first half of this year.