20% Chery Fundraising 2.9 billion for 5 institutions

Our correspondent (reporter Zhu Zhengzi) yesterday from Chery Automobile Co., Ltd. was informed that this March, Chery official and Huarong Asset Management Co., Ltd., Bohai Industrial Investment Fund Management Co., Ltd., Shenzhen, China Investment Venture Management Co., Ltd., Rong de Asset Management Limited and Ding Hui Equity Investment Management (Tianjin) Ltd. 5 Investment institutions signed the agreement on equity transfer.　　According to the agreement, 5 investment institutions will contribute 2.9 billion yuan to buy 20% of Chery's shares. Chery Automobile General Manager Assistant, spokesman Jin Yibo yesterday afternoon to accept this reporter interview, said, "5 investment institutions to buy a stake in Chery automobile, the symbol of Chery into a further diversification of equity, the company structure more optimization stage." Jin Yibo also said that "Chery is an ambitious company, into the world's top ten is our goal, and now the global economy is in the financial crisis, Chery seize the opportunity to develop the best opportunity, the introduction of funds will further promote the development of Chery." "However, Chery sources said the equity exchange would be used for the development of Chery's domestic business, not for overseas acquisitions." Chery spokeswoman Jin Yibo confirmed the matter, saying Chery is using the money for its own development, not for overseas acquisitions.　　The deal was finalised a few months ago, but there was no news of the announcement. 2007 Chery Automobile has completed the shareholding system transformation, and set the 2008 domestic A-share listing target.　　But because of the subsequent downturn in the domestic stock market, coupled with the domestic automobile and the overall economic environment is not good, Chery listing plan has not been achieved. But with stocks now bottoming out, Chery's listing has again sparked concern in the industry. Yesterday, the securities industry said Chery's transfer of 20% shares to raise 2.9 billion yuan will set a standard for the company's future IPO valuations.