BAIC to enter Hong Kong Stock Exchange this October

Gasgoo.com (Shanghai June 25) - The timer to Beijing Automotive Group's entry on the Hong Kong Stock Exchange continues counting down. BAIC Group cleared its last obstacle to entering the stock exchange last year after it finally obtained the controlling stake in Beijing Benz. According to a report appearing in the Beijing Morning Post this week, BAIC announced that it will officially enter the Hong Kong Stock Exchange this October, when it begins selling H shares.

On an official comment on the issue, representatives from BAIC commented that they are continuing to prepare for entry on the Hong Kong Stock Exchange, but have no specific information at the moment to reveal.

BAIC has been preparing to enter the stock market for many years now. In 2010 it established a subsidiary company called BAIC Stock Company, Ltd., whose mission is to provide a brand new financial platform for the manufacturer's Beijing own brand vehicles, as well as aid in its entry to the stock market. At that time BAIC CEO Xu Heyi commented that he predicted the manufacturer to enter the stock exchange in two years time. Clearly that forecast was overly optimistic. Last November, BAIC yielded a 12 percent share in its company to Daimler for 625 million euros ($847.48m), in exchange, BAIC was able to increase its 50 percent stake in joint venture Beijing Benz to a controlling share of 51 percent.

In order to achieve ambitious sales targets, BAIC has spent a considerable amount of effort over the last two years in boosting its operations in different parts of the country. Just last year the manufacturer held events in Jiangsu, Yunnan and Jiangxi. Its 10 billion RMB ($1.63b) Huanghua production site begun production last year; the site boasts a production capacity of 400,000 vehicles. At around the same time, BAIC completed its acquisition of fellow domestic manufacturer Changhe Automobile. With the high number of projects it has been embarking on, BAIC anxiously needs to enter the stock exchange to collect funds for future endeavors. According to reports last year, BAIC's liabilities already exceeded 50 billion RMB ($8.16b).

According to reports, BAIC has plans to expand into offering A shares after its successful entry into the Hong Kong Stock Exchange is complete.