HK Stock Market Move | DONGFENG GROUP (00489) surges more than 7% again, controlling shareholder plans to restructure, industry speculates that it may join hands with Chongqing Changan Automobile.

DONGFENG GROUP (00489) rose over 7% again, with the stock surging more than 25% yesterday. As of the time of writing, it increased by 7.14% to HK$4.35, with a turnover of HK$542 million. On the news front, DONGFENG GROUP announced on February 9th that its controlling shareholder, Dongfeng Corporation, is planning a restructuring with other state-owned central enterprises. This restructuring may lead to a change in the company's controlling shareholder, but will not result in a change in the actual controller, and will not have a significant impact on the company's normal production and operation activities. It is worth mentioning that Chongqing Changan Automobile also released a similar announcement on the same day, stating that its indirect controlling shareholder, China Weaponry Equipment Group, is also planning a restructuring with other state-owned central enterprises. Some believe that Dongfeng Group and Chongqing Changan Automobile may join forces in a restructuring. A spokesperson for Dongfeng Group responded by saying, "Based on the current announcement, we are still in the planning stage."