Great Wall Motor shares slump after Shanghai listing plan rejected
16 July 2008
Shares in Great Wall Motor, the mainland's largest sport-utility vehiclemaker, dropped by 8.77% after the mainland regulator rejected its proposed listing in Shanghai, the South China Morning Post reported. The Hebei-based automaker's shares shed HKD$0.50 (US$0.06) to close at HK$5.20 (US$0.67), its biggest percentage loss since October 3. The company planned to sell 121 million A-shares on the Shanghai Stock Exchange to fund US$410 million in investments. Almost half of the IPO applications filed this month have been rejected by the China Securities Regulatory Commission due to concerns that new supply might hurt a fragile stock market, the paper said. The Shanghai Composite Index has already dropped by 47% this year.