GAC Changfeng Motor again suspended trading of its shares recently as its parent company Guangzhou Automobile Group (GAC Group) will acquire the company through a share swap, in hopes of achieving an overall listing in the A-share market.
GAC Group has received official written approval from the China Securities Regulatory Commission. Under the merger proposal, one Changfeng share may be exchanged for 1.6 GAC Group shares.
GAC Group is expected to restart listing as an A-share by the first quarter of this year. Once it does so, the group will be China's first large-scale automobile group to list on the main board of both A-share and H-share markets.
