Chery's chances of making an independent IPO slim

Gasgoo.com (Shanghai October 9) - Following the proposed joint venture between Chery and Jaguar Land Rover gaining official government approval, there has been much speculation about Chery potentially entering the stock market. However, in a report appearing on Shanghai Securities News today, the manufacturer stated that it currently had no plans for a stock market launch.

According to a stock market analyst, it isn't very possible for Chery to independently make an initial public offering. The provincial government of Anhui has previously considered combining Chery and JAC for a joint stock market launch, but plans fell through in the end. Complex legal regulations and the relatively subpar state of the Chinese automobile market will make it even more difficult for the manufacturer to enter the stock market on its own.

Chery first attempted to enter the stock market in 2008, when it sent an application to the China Securities and Regulatory Commission. However, the global financial crisis put a dent in the manufacturer's plans. An application attempt the next year also failed due to legal complications.