Geely shares in Hong Kong jump as Shanghai listing nears

Chinese carmaker to raise $2.93bn in first listing from industry on STAR Market

A production line at a Geely plant in Zhejiang province. The listing of Geely, whose parent company also controls Volvo Cars, would make it the first carmaker on the STAR Market. © Reuters

NARAYANAN SOMASUNDARAM, Nikkei Asian Review chief banking and financial correspondent

September 2, 2020 13:33 JST

Updated on September 2, 2020 18:59 JST

HONG KONG -- Geely Automobile Holdings' shares surged on the Hong Kong Stock Exchange on Wednesday, a day after the Chinese carmaker filed for a 20 billion yuan ($2.93 billion) listing on Shanghai's STAR Market, closing at their highest level since mid-July.

The Hangzhou-based automaker, controlled by billionaire Li Shufu, who is the largest single shareholder of Daimler, closed up 3.3% at 17.66 Hong Kong dollars ($2.28), extending its 4.4% gain on Tuesday. Geely trades in Hong Kong at 21 times forward earnings, or about a fifth of the average multiple on the STAR Market, indicating Geely shares could get a boost from a Shanghai listing.