GAC Group H-shares resume trading on Sept. 15, surging over 12% in pre-market auction

According to a Hong Kong Stock Exchange announcement by GAC Group, trading in GAC Group’s H-shares resumed at 9:00 a.m. on September 15, with related structured products also resuming trading simultaneously. During the pre-market auction session, GAC Group’s H-share price rose by more than 12%, reaching HK$2.62 per share, giving the company a total market capitalization of HK$51.034 billion. On the evening of September 14, GAC Group issued an announcement regarding a major asset restructuring. The announcement stated that GAC Group had signed a Letter of Intent with China FAW Co., Ltd. (“FAW”) to acquire, via share issuance, a portion of the equity held by FAW in a certain whole-vehicle joint venture company, along with raising配套 funds. Preliminary estimates indicate that upon completion of the transaction, FAW will become the second-largest shareholder of GAC Group. The transaction is expected to constitute both a major asset restructuring and a related-party transaction, but will not involve any change in actual control or a backdoor listing. Trading in GAC Group’s A-shares was suspended from the opening of trading on September 14, 2026, with the suspension expected to last no longer than 10 trading days. The announcement did not disclose the name of the joint venture company whose equity is being acquired. Reports indicate that the “certain whole-vehicle joint venture company” referenced in the announcement is FAW Toyota Motor Co., Ltd. FAW Toyota’s current equity structure is as follows: FAW holds 50%, Toyota Motor Corporation holds 45.7706%, and Toyota (China) Investment Co., Ltd. holds 4.2294%. The reports also state that the core proposal for the integration of “North-South Toyota” involves establishing a proposed Toyota (China) Sales Company, led and driven by Toyota Japan. The proposed equity structure of the new sales company would be: Toyota holding 50%, FAW holding 25%, and GAC holding 25%. Following the integration, only globally unified models will be retained among the sister models offered by both parties, and dealer channels will be fully integrated, enabling dealers to sell and service all Toyota models.