Dongfeng, FAW halt trading on merger reports
State-owned automakers Dongfeng Motor and FAW Group today halted trading in shares of their listed subsidiaries, although Dongfeng said it has not received any information from authorities.
Trading in Dongfeng Automobile Co., FAW Car Co. and Tianjin FAW Xiali Automobile remained halted. FAW said the stoppage was due to media reports of information that had not previously been released.
Dongfeng acknowledged that the media reports said Jilin province Vice Party Secretary Zhu Yanfeng would become Dongfeng chairman and that current Chairman Xu Ping would become the chairman of FAW Group.
Dongfeng and FAW are subject to the government's efforts to restructure inefficient state firms and have also been targeted in Chinese President Xi Jinping's effort to crack down on corruption.
FAW Group Chairman Xu Jianyi is under investigation for "violating party discipline," a euphemism for corruption, the Communist Party's lead disciplinary agency said in March.
The central government generally directs leadership changes and restructuring of major state-owned firms.
Yu Jiyang, an FAW spokesman, said there was no official information related to the chairmanship or a potential merger.
Dongfeng Motor has a 14 percent stake in PSA Peugeot Citroen and joint ventures with Nissan and Honda, while FAW has joint ventures with Volkswagen and Toyota.
Dongfeng acknowledged that the media reports said Jilin province Vice Party Secretary Zhu Yanfeng would become Dongfeng chairman and that current Chairman Xu Ping would become the chairman of FAW Group.
Dongfeng and FAW are subject to the government's efforts to restructure inefficient state firms and have also been targeted in Chinese President Xi Jinping's effort to crack down on corruption.
FAW Group Chairman Xu Jianyi is under investigation for "violating party discipline," a euphemism for corruption, the Communist Party's lead disciplinary agency said in March.
The central government generally directs leadership changes and restructuring of major state-owned firms.
Yu Jiyang, an FAW spokesman, said there was no official information related to the chairmanship or a potential merger.
Dongfeng Motor has a 14 percent stake in PSA Peugeot Citroen and joint ventures with Nissan and Honda, while FAW has joint ventures with Volkswagen and Toyota.
