Geely soars to all-time high on parent's move

HONG KONG (Reuters) - Shares of Geely Auto (0175.HK) rose 9.3 percent to an all-time high on Wednesday, boosted by a report that its parent was a step closer to completing its acquisition of Ford Motors's (F.N) Volvo unit.

Geely shares rose to as high as HK$4.24 before steadying at HK$4.18 in late morning, still up 7.7 percent, with 139 million shares changing hands.

"The probability (for the parent to complete the deal) is much higher now," said Olive Xia, analyst at Core Pacific Yamichi. "If completed, it will do good to the listed company in the long run in areas such as production technology. It will further enhance its brand and image."

Xia holds a positive view of the mainland auto market on optimism over China's consumer market as the country's economy keeps up its strong growth momentum.

Zhejiang Geely Holding Group, the Chinese carmaker picked as the preferred bidder for Ford Motor's Volvo unit, is seeking at least $1 billion in loans from Chinese banks to finance its $1.8 billion bid, sources told Reuters on Tuesday.

Shares of other Chinese car makers were also higher on Wednesday, with car and battery maker BYD (1211.HK) surging to more than a month high at HK$77.90 before steadying at HK$77.05, still up 3.98 percent.

($1=HK$7.75) (Reporting by Donny Kwok; editing by Muralikumar Anantharaman)