Latest News:  
Beijing   Light snow    3 / -2   City Forecast

People's Daily Online>>China Business

Changan to buy back Shenzhen B-shares

(Shanghai Daily)

10:39, December 07, 2011

China's Chongqing Changan Automobile Co yesterday said it plans to spend HK$610 million (US$78.5 million) to buy back its Shenzhen-listed B shares.

The Chinese partner of Japan's Suzuki Motor said it would buy up to 270 million Hong Kong dollar-denominated B shares within six months, representing 25 percent of all its B shares and 5.6 percent of its total shareholding. The carmaker plans to pay not more than HK$3.76 for each share, according to its statement to the Shenzhen Stock Exchange.

Changan said the current price of B shares is clearly at odds with the company's business performance and profitability. "The investment value of the company has been undervalued, bringing negative impact on brand image and not fitting the interests of shareholders," its statement added.

Changan's B shares closed at HK$2.26 on October 14 before it suspended trading, which represented less than half of the market value compared with the 4.39 yuan (68 US cents) for the company's yuan-denominated A shares.

The company's B-share price has declined this year on overseas investor concerns of slowing business growth as the overall Chinese car market cooled.

In the first three quarters of this year, Changan's combined sales fell 6 percent from a year earlier to 1.25 million units due to waning demand for minivans after government vehicle purchase incentive ended. The fall in sales compared with an industry-wide growth of 3 percent during the same period.

The carmaker's net profit tumbled an annual 48 percent from January to September.

Email|Print|Comments(Editor:陈乐乐)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. China's peacekeeping engineering

  2. Trip to 'Mars' takes its toll

  3. Sandaoyan Town

  4. Children freed from clutches of crime gangs

Most Popular

Opinions

  1. Chinese wind power has great potential
  2. 'Diplomatic war' may escalate conflicts
  3. ASEAN benefits from China's WTO entry
  4. Chinese schools need to tune in and chill out
  5. Flexibility for progress
  6. Clear the air today for a brighter future
  7. Private sector as catalyst for development
  8. EU needs stronger economic and currency union
  9. U.S. immigration-eyed investment risky
  10. November inflation to ease in China

What's happening in China

Can a ray of sun peak through the smog?

  1. Drink was 'deliberately' poisoned
  2. It's migrant payback time: govt
  3. US woman seeks her roots in Yunnan
  4. Beijing to get online water quality index
  5. Top biz school to pick students independently

PD Online Data

  1. Yangge in Shaanxi
  2. Gaoqiao in Northern China
  3. The drum dance in Ansai
  4. Shehuo in Baoji City
  5. The dragon dance