Dongfeng Motor Soars In HK After Board Okays Listing On ChiNext Board

Dongfeng Motor Group Co. surged in Hong Kong after unveiling plans to also list on the mainland, the latest example of such intentions providing a big boost to a Chinese firm’s existing shares.

The automaker jumped as much as 27%, the most on record, on a volume that’s more than four times the three-month average. Dongfeng’s board approved a plan to list on Shenzhen’s ChiNext board, which will soon see the first batch of listings under relaxed rules.

The move comes amid a wave of offshore-traded Chinese companies returning to home listings, thanks to authorities’ efforts to attract high-tech firms to local exchanges and escalating Sino-U.S. tensions that have made American bourses a less appealing destination for some.

Such plans for an A-share listing have generally been well-received, adding more to companies’ incentive to sell shares onshore.

Semiconductor Manufacturing International Corp. has soared about 70% in Hong Kong since announcing in early May it would seek a listing on Shanghai’s high-tech Star board. The new stock more than tripled in its debut. Geely Automobile Holdings Ltd. has advanced some 35% since disclosing its plan last month to list at the same venue.

Dongfeng’s deal proceeds would go toward projects including high-end new energy vehicles, the company said in a late Monday exchange filing. The A-shares wouldn’t make up more than 10% of Dongfeng’s enlarged share count. The company’s market value reached HK$55 billion ($7.1 billion) with Tuesday’s stock gain.

Bloomberg