Chery plans dual listing

Chery Automobile Co., Ltd, one of China's leading car manufacturers, is planning a dual listing both on the mainland and Hong Kong stock markets in the next two or three years, according to an industry insider.

The move is to raise funds for the aggressive expansion plans of the Wuhu-based company in East China's Anhui Province. Chery is now undergoing internal financial restructuring to pave the way for the listing.

Experts estimated the company would need to raise a minimum of RMB 10 billion through the dual listing to fuel its expansion plan both home and abroad.

However, Chery needs to wait for the best time to go public as its operating results are not so attractive to investors at the moment. Its operating performance lagged far behind many other industry rivals, such as General Motors's venture with SAIC Motor Co and Honda Motor's tie-up with Guangzhou Automobile Corp.

Recently, Chery inked a deal with Quantum LLC, a U.S.-based firm, to establish a JV with an annual output of 150,000 vehicles and total investment of RMB 5.38 billion. It has also struck a deal with Fiat to manufacture Chery, Fiat and Alfa Romeo cars with an annual output of 175,000 vehicles.

As a leading self-branded car manufacturer in China, Chery plans to boost its capacity to one million units by 2010. Chery also announced that it will build seven more factories overseas before 2010 to further enhance its overseas sales.