HK Stock Market Move | Guangzhou Automobile Group (02238) rose over 5% in early trading, plans to acquire a 50% stake in FAW Toyota to optimize the efficiency of state-owned capital allocation.

Guangzhou Automobile Group (02238) rose over 5% in early trading, up 4.54% as of press time, at HK$2.63, with a turnover of HK$52.391 million. On the news front, Guangzhou Automobile Group announced that on September 28, 2026, the Company and the seller, FAW Shareholding, entered into an acquisition agreement, pursuant to which the Company has conditionally agreed to acquire, and the seller has conditionally agreed to sell, the seller's 50% equity interest in the target company, FAW Toyota. The Company intends to pay the consideration for the proposed acquisition by way of issuing consideration shares (i.e., issuing A shares), at a price of RMB5.75 per consideration share. Upon completion of the proposed acquisition, the target company is expected to become a major joint venture of the Company, in which the Company will hold a 50% equity interest, and the financial information of the target company will not be consolidated into the Group's consolidated financial statements. The proposed transaction is a major strategic cooperation between a Guangzhou municipal state-owned enterprise and a central state-owned enterprise in the automotive industry. It aligns with the decisions and arrangements of the CPC Central Committee and the State Council on deepening the reform of state-owned assets and state-owned enterprises and promoting the optimization of the layout and structural adjustment of the state-owned economy, and is consistent with the policy direction of the national automotive industry. Through the proposed transaction, the efficiency of state-owned capital allocation in the automotive industry will be further optimized, which is conducive to enhancing the concentration of the domestic automotive industry and consolidating the foundation for high-quality development of the automotive industry.