Dongfeng Group shares a 11% rise in share price of Taiwanese car companies

In May this year, Foudon, vice chairman of Taiwan's Mac, said that the auto industry would be opened to the mainland by the end of May, and the market speculated that there would be more co-operation between the two sides.　　Taiwan's media reported yesterday that Dongfeng Group (00489) was interested in acquiring 20% per cent of the Luxgen China plant in Zhi, Taiwan. Foudon mentioned that there were two mainland auto companies interested in investing in Taiwan to open up the market, and at that time there was speculation of cross-strait stock boom.　　Dongfeng's shares surged 11% to 6.57 yuan yesterday amid rumours of a joint venture with Taiwanese companies. Refers to the proposed purchase of Yu Long China plant 20% shares earlier media reports, because the government to reduce competition, intends to restructure the mainland auto companies, the 15 major auto factory will be 10 major auto group.　　Taiwan's "Business Times" and "economic daily" quoted Yu Long group's director revealed that the Loong for its own brand Na Zhi (Hangzhou) in Xiaoshan set up factories to obtain approval of the difficulties greatly increased. Both reports cite the news that Loong has poured water into the project to avoid a huge investment in the Agile program, the intention to adjust the ownership structure of the Xiaoshan factory, formerly with Zhejiang Yu Investment group accounted for a half, but now there are loong or from the Chinese reputation to the Dongfeng to sell 20% stake, to find Dongfeng this "strong and powerful" partner shares,　　To ensure that approval can be issued smoothly, and will jointly develop the Chinese nation car. After the equity adjustment, the opportunity to obtain approval is increased.　　"The Business Times" quoted Loong Enterprise chief executive Kakete said confidently yesterday that the mainland's Zhi (Hangzhou) car Factory plan has been started and is expected to be approved by the end of the year. Now the two factories jointly develop their own brands and markets, investors hope to bring benefits, because the mainland's main domestic capital of the mainland auto factory to develop their own brands can enjoy government business vehicles priority procurement, incentive incentives.