The investors included Bohai Industrial Investment Fund Management and Huarong Asset Management Corp, it said in a statement.

 

The move helped to diversify the state-owned automaker's shareholdering structure, it added, although it did not say how big a stake the investors received.

 

Proceeds will be invested in new-energy vehicle development, a heavy truck project and an auto plant, the statement said, citing Chery spokesman Jin Yibo.

 

The Wall Street Journal had reported earlier on Wednesday that Chery raised 2 billion yuan by selling a 20 percent stake to domestic private equity investors.

 

Several Chinese automakers, including Chery and SAIC Motor Corp, China's largest automaker and a partner of General Motors Corp and Volkswagen AG, are keen to develop their own automobile models, especially for larger, more profitable cars, and to move into overseas markets.

 

Chery earlier this year unveiled its mid- to high-end Riich G6 sedan that aims to take on more established rivals such as Toyota Motor in that lucrative market segment.

 

China's home-grown automakers primarily produce small cars, which have recently enjoyed strong sales growth as Beijing implemented tax incentives for compact cars and rebates to rural buyers to bolster domestic demand.

 

While the global industry struggles with a severe downturn, China's car market, now the world's largest, has rebounded and posted record sales in recent months.

 

Chery said last month that it may boost its annual car sales target by 50 percent if the market recovery proves sustainable. ($1=6.829 Yuan)