Great Wall Motor suspends Hong Kong shares until reports of BMW tie-up ‘clarified’
Hong Kong — Great Wall Motor, China’s biggest SUV maker, halted trading in its Hong Kong shares after they surged on media reports the company plans a tie-up with Germany’s BMW.
Trading would be suspended pending clarification of press articles, the company said.
The stock jumped 14% on Wednesday after www.iautodaily.com, a Chinese website, reported Great Wall and BMW would set up a joint venture in China and were selecting a venue to build a manufacturing plant.
A BMW executive familiar with the matter told Reuters the report was "generally true".
Brilliance China Automotive Holdings, which makes cars in a venture with BMW, rebounded 4.9% at 10.01am in Hong Kong after falling 2.1% on Wednesday.
Any BMW tie-up with Great Wall is likely to produce vehicles under a new brand, rather than under the German marque, according to Credit Suisse, which raised its target price on Brilliance after record sales volume.
Great Wall, which does not have any car-making partners, did not make an immediate comment on the report on Wednesday, while BMW also declined to immediately comment.
Great Wall’s Shanghai shares have been suspended from trading since late last month.