SHANGHAI/BEIJING, Oct 11 (Reuters) - Chinese carmaker Great Wall Motor’s Hong Kong shares leapt as much as 19 percent on Wednesday morning, after a media report about a planned joint venture (JV) with luxury German automaker BMW .
The carmaker’s shares in Hong Kong hit their highest level in over two years, buoyed by a report by Shanghai-based industry outlet www.iautodaily.com saying Great Wall would form a JV with BMW in China and was now looking for a factory site.
The report cited an unnamed official in the eastern Chinese city of Changshu saying the companies’ search for a site would make progress by the end of the year.
A BMW executive familiar with the matter told Reuters the report was “generally true” and noted the companies were looking to form a JV in China and at the possibility of opening an assembly plant in Changshu.
“I don’t know how far along we have gone nailing this deal,” or whether the two companies have official central government approval for the JV or not, the BMW executive said.
He also could not say what specific vehicles this potential JV was looking to manufacture in China.
The executive asked not to be named because he was not authorized to speak to media.
A BMW spokesman in China did not provide an immediate comment when contacted by Reuters on Wednesday.
Great Wall, whose Shanghai-listed shares were suspended from trading pending an announcement, did not immediately respond to calls for comment. (Reporting by Adam Jourdan in SHANGHAI and Norihiko Shirouzu in BEIJING; Editing by Himani Sarkar)
Our Standards: The Thomson Reuters Trust Principles.