Shares suspended, Geely Auto mulls to buy parent's assets

Chinese car-maker Geely Automobile （0175.HK）'s share trading was suspended late Wednesday. Geely shares will be relisted after some substantial acquisition and connected transactions, according to the company's announcement.

 It's speculated that Geely Holding Group's other four subsidiaries are likely to be surged by Geely Automobile, thus all the Geely's car-making business could get financed from the Hong Kong Stock Exchange.

The local media, Shanghai Securities News, also said that buying the four affiliated corporations will cost Geely Auto around RMB1.9 billion (about USD 250.48 million). If all the efforts come to fruition, Geely Automobile will own all the car manufacturing assets, and it will become the group's cash cow.
 
Geely Group entered the automobile manufacturing field in 1996, and had already grown into a key brand for the economical car in China. Geely Auto was successfully listed on the Hong Kong Stock Exchange in May, 2005.
 
During the first half of this year, Geely sold 108,880 units of vehicles, currently ranking 7th among the top enterprises. Geely's export topped 15,000 units last year, and now it's planning to export two thirds of its total production and to boost the capacity to 1 million by 2010.