SHANGHAI, 19 June (BelTA - chinadaily) - Geely Auto is expected to be the first carmaker listed on China's Nasdaq-style sci-tech innovation board, also known as the STAR market, Chinese financial news outlet Yicai reported.
The company issued a statement on Wednesday evening saying the board has approved the initial proposal to list on Shanghai's STAR Market.
Though the details and timetable have not yet been reviewed and approved by related departments, if successful, Geely Auto will become the first automaker returning to the A-share STAR Market.
In recent years, Geely Auto has been putting efforts into becoming an international automotive group via acquisition and industrial layout, a PR official from the company told Yicai. "In the future, we hope to further the transform into an international tech company. "
In April, China's top securities regulator adjusted the threshold for innovative red chip companies, or companies registered overseas but operating in the Chinese mainland, making them eligible to seek a listing on the domestic market under a pilot scheme.
The new requirement allows overseas-listed innovative red chips with a capitalization of 20 billion yuan or above and in possession of self-developed, world-leading technologies, innovative strengths and a strong position in their industries to apply for a domestic listing.
At present, Geely Auto has topped auto sales among domestic independent brands for the third consecutive year. In the first five months, its market share reached 6.9 percent, in line with policy requirements.
Opening financing channels of the capital market in A-share market can promote diversified financing modes, optimize capital structure and increase companies' capital strength, the official said, adding that listing both in the A-share market and Hong Kong can make better use of domestic and international market resources to help Geely's technical transformation and long-term development in the future.
Li Shufu, chairman of Zhejiang Geely Holding Group, aims to build Geely Auto into a global enterprise that can enjoy equal popularity with Japanese automaker Toyota.
In February, Geely Auto announced it will merge its business with Swedish brand Volvo Cars, both subsidiaries of Zhejiang Geely Holding Group, and planned to seek listings both in the Hong Kong stock exchange and Stockholm as well.