JAC Kills Stock Plan to Boost Vehicle Output
Jianghuai Automobile Co. has withdrawn its plan to raise 2.8 billion yuan ($443 million) to expand vehicle production.
The automaker had planned to issue 150 million shares of stock on the domestic market. But China's shaky domestic stock market led the company to shelve its plan, a JAC spokesman told journalists.
The move is a setback for the automaker's effort to strengthen its passenger-vehicle business.
In April 2011, JAC applied to China's stock market regulator to issue stock.
The money was to have been used to expand passenger-vehicle output by 240,000 units, and to boost gasoline-engine production by 200,000 units.
Last year, JAC sold 217,201 passenger vehicles and 208,304 light trucks and buses, according to LMC Automotive.
JAC is listed on the Shanghai stock exchange, and is headquartered in the eastern China city of Hefei.
The automaker had planned to issue 150 million shares of stock on the domestic market. But China's shaky domestic stock market led the company to shelve its plan, a JAC spokesman told journalists.
The move is a setback for the automaker's effort to strengthen its passenger-vehicle business.
In April 2011, JAC applied to China's stock market regulator to issue stock.
The money was to have been used to expand passenger-vehicle output by 240,000 units, and to boost gasoline-engine production by 200,000 units.
Last year, JAC sold 217,201 passenger vehicles and 208,304 light trucks and buses, according to LMC Automotive.
JAC is listed on the Shanghai stock exchange, and is headquartered in the eastern China city of Hefei.
