Market Price of Great Wall Half Cut, Benz Denys Involved

Worries about the development of Great Wall brust because of Great Wall h8 delivery time delay. On 9 May, market price of Great Wall has dramatically dropped. Price of HKSE drops 16.92% to 27.25 HKD. The entire trade volume mounts to 1.77 billion HKD. The lowest point low to 26.1 HKD, which has dropped 20.43%. Price of SSE is blocked at the bottle limit with 28.69 CNY. Bottle limit does not open for the entire day. There are still 12.39 million shorts on list.

As it known, capital value has vanished 16.8 billion HKD for the day. It has hit the record high capital quit volume. All behind is the short emotion of institution, which include IFC and CICC. As reporter reading most of the report for Great Wall, only few of them still optimize on the company. Most of institution have reduced rate of Great Wall. UBS, which has shorted Great Wall 2 years ago says in its report that it is impossible for Great Wall to delivery any H8 this year. Therefore, UBS rates Great Wall with “sell”.

There is message says that the real reason for Great Wall H8 delay is because of imitation relative products of Benz. And it is said that Benz already submit its lawyer letter to court. As reporter known from relative staff of Benz PR department, “as we check, the rumor is not true. We do not heard any relative with it.”

Insider of Great Wall tells reporter that “we are so under pressure.” As a high-end market test mode, H8 is taken as Great Wall’s new profit source. According to forecast of the industry, H8 would bring almost 10 billion CNY income for Great Wall if it market launching on time, and improve its return on net asset. Great Wall submits its beautiful performance last year, but its return on net asset is only 6.69%, which is lower than 8.44% of year 2012.

However, Great Wall, which does not own enough high-end technology reserve, does not walk too smoothly on the high-end road. Great Wall H8 plans its first show at Guangzhou Auto Exhibition of year 2013, but is delayed for technology reason to Jan this year. However, because of problem happened at media test driving, Great Wall, the company already open for order, has decided to delayed delivery time of h8 again. H8, which has been delayed twice, finally launch Beijing Auto Exhibition this year. However, Great Wall announces delay delivery only after 1 month.