HK Stock Market Move | YONGDA AUTO (03669) rises by over 5% and signs a strategic cooperation framework agreement with Xiamen Hongxin Electronics Technology Group Inc. Citigroup believes this may bring a second growth engine to the company.

YONGDA AUTO (03669) rose more than 5%, as of the time of the report, it has risen by 5.62% to 0.94 Hong Kong dollars, with a trading volume of 2.5841 million Hong Kong dollars. In terms of news, Citigroup released a research report pointing out that recently, YONGDA AUTO signed a strategic cooperation framework agreement with Xiamen Hongxin Electronics Technology Group Inc. (300657.SZ), officially entering the field of intelligent vehicles. At the same time, an affiliate of Xiamen Hongxin Electronics Technology Group Inc. plans to subscribe for 73.16 million new shares of YONGDA AUTO at 0.825 Hong Kong dollars per share, accounting for 3.85% of the enlarged share capital, raising a total of 60.36 million Hong Kong dollars, intended for the initial deployment of commercialization of intelligent vehicles. The bank holds an overall positive view on this, believing that this may bring a second growth engine to YONGDA AUTO.