Shanghai Auto 500 million dollars subscribe to GM 0.97% shares

Yesterday (November 18) evening, Shanghai Auto (600104, close 18.00 yuan) announced that the company's wholly-owned subsidiary of Shanghai Automobile Hong Kong Investment Co., Ltd. participated in the General Motors IPO sale of common shares, with a share of 33 U.S. dollars to be allocated 15.15 million common shares, accounting for GM's total share capital of 0.97 %, with a total contribution of 499.99 million dollars.　　GM's shares will raise $23 billion trillion, a record of global IPOs in recent years.　　Shanghai car related people told the Daily economic news reporter that the acquisition of General Motors will be fully funded by the Shanghai Automobile Hong Kong Investment Company in Hong Kong's financial market to solve the self-financing. GM, on the other hand, will take the GM's 10% per cent stake in SAIC, and has already described the increase in a filing with the US Securities and Exchange Commission.　　SAIC-GM's biggest shareholder is Shanghai Motor, which owns 51%. In recent years, the scope of cooperation between SAIC and GM has been expanding and the level of cooperation has been rising. In 2009, the two sides set up a joint venture in Hong Kong, announcing the opening of the Indian market as a starting point for joint exploration of emerging Asian markets. In August this year, both sides joined hands in key parts and components to jointly develop a new generation of environmentally-friendly energy-saving powertrain technology. This is the first time that Chinese auto companies have jointly developed with the International Large Auto Group in the core technology of powertrain, and share intellectual property globally.　　October, the two sides also identified in the new Energy Vehicle basic technology research and development and the next generation of vehicle models and other core areas of further strengthening cooperation, and signed a strategic cooperation memorandum. Shanghai Motor said the stake in GM was based on a long-standing good strategic partnership and confidence in GM's development prospects. GM has been able to regain its competitiveness since its reorganization in July 2009 and has been profitable for three consecutive quarters this year.