Chery Auto denies rumor of backdoor listing plan

Shanghai, November 9 (Gasgoo.com) There are rumors that Chery Auto plans to implement the backdoor listing, but the carmaker's spokesman has dismissed them as "pure speculation," sohu.com said today.

Recently, due to the market rumors that Chery Auto may backdoor Ankai Auto (000868) stock, Ankai's shares surged to the daily limits for two consecutive trading days. On October 27, the shares of Ankai rose again. Due to unusual fluctuations in share price, the trading of Ankai was suspended for one hour.

Mr. Jin Yibo, assistant general manager and spokesman of Chery Auto, said the rumors were pure speculations in the market. Chery will choose to launch its IPO directly. The reason behind these rumors, including the news that there was a merger project between Chery Auto and Jianghua Auto (JAC), may be that all of the three automakers are in Anhui province, he explained.

As to the specific time of Chery listing, Mr. Jin said it should be in the first half of next year. "At present Chery is going through the pre-listing procedures. The time of IPO is connected with the process of government approvals, but we are fully prepared," he said.

However, the Anhui provincial government has encouraged the auto-making companies in the province, mainly Chery and Jianghuai, to achieve mergers and acquisitions.