Chinese automakers Dongfeng Automobile and Changan Automobile,both of which are centrally administered state-owned enterprises(SOEs),announced on Sunday night restructuring plans of their controlling shareholders.
Dongfeng Automobile said in a filing that its indirect controlling shareholder Dongfeng Motor Corp is planning a restructuring with other central SOEs,which could result in a change in its indirect controlling shareholder,without affecting its actual controller.
The restructuring arrangement is subject to procedures and approval from the relevant authorities,it said,adding that the restructuring will not have a significant impact on the company's normal production and operations.
On the same day,Changan Automobile released a similar announcement regarding its indirect controlling shareholder China South Industries Group Corp's restructuring plan.
As of press time on Monday,shares of Dongfeng Automobile hit daily limit.Meanwhile,shares in Changan Automobile climbed 5.54 percent,according to Chinese financial data provider Tonghuashun.
Currently,the State-owned Assets Supervision and Administration Commission(SASAC)of the State Council directly supervises three centrally administered automotive enterprises:FAW Group,Dongfeng Motor Corp,and Changan Automobile,China Media Group(CMG)reported on Monday.
In the past two years,the three automotive enterprises have accelerated their transition to new energy,investing nearly 36 billion yuan($4.93 billion)in new-energy vehicles(NEVs)in 2023,with the investment proportion exceeding 60 percent,according to the CMG.
Since 2024,the SASAC has frequently signaled its intent to accelerate the development of NEVs,offering support in areas such as assessment,innovation and industry integration.
Zhang Yuzhuo,chairman of the SASAC,said in March 2024 that the commission will adjust policies to conduct separate assessments of the NEV operations of the three state-owned automakers.The assessment criteria will include technology,market share,and the future development of the enterprises.
Gou Ping,a vice chairman of the commission,said that the SASAC will encourage and support central SOEs to carry out high-quality investment and mergers and acquisitions,as well as specialized integration,in order to strengthen control over core industrial resources and key technologies.
