Liuzhou Wuling plans backdoor listing in HongKong

Shanghai. September 17 (Gasgoo.com) Liuzhou Engine Plant, a company used to supply small-displacement engines to SAIC-GM-Wuling is now planning to list in Hong Kong after losing its biggest client, Chinese media reported today.

When SAIC-GM-Wuling was celebrating the birth its biggest small displacement engine plant in Liuzhou last week, Liu Zhou Engine Plant was worried about its future.

Liuzhou engine plant used to supply engines to SAIC-GM-Wuling. Now SAIC-GM-Wuling has established a joint venture in Liuzhu, Liuzhou engine plant has lost its biggest client, which used to purchase 80 percent products made by Liuzhou Engine Plant.

"We'are under huge pressure after losing SAIC-GM-Wuling business," said He Shiji, president of Liuzhou Wuling Automobile Co, the parent company of Liuzhou Engine Plant.

To survive the crisis, Liuzhou Engine Plant plans to list in Hong Kong by backdoor listing. Earlier this month Liuzhou Wuling (Liuzhou Engine Plant's parent company) has set up a joint venture with Dragon Hills Holding Limited in Hong Kong. Liuzhou Wuling now becomes Dragon Hills Holdings' second largest stakeholder with 29.05 percent stake.

"The funds we raise in Hong Kong stock market will be used to develop and upgrade engine products," said He Shiji. "We have to survive on our own without SAIC-GM-Wuling as our client."