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.
