FAW to Become GAC's Second Largest Shareholder; GAC H-Shares Surge Over 12% on Resumption
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On September 15, GAC Group's H-shares surged over 12% to 2.62 HKD per share after resuming trading, following a major asset restructuring announcement. The company disclosed plans for a significant transaction involving the acquisition of equity in a joint venture, widely reported as FAW Toyota Motor Co., Ltd. The deal, which constitutes a major asset restructuring and related-party transaction, is expected to lead to the merger of FAW Toyota and GAC Toyota operations. Under the proposed plan, a new Toyota (China) sales company would be established with Toyota holding 50%, FAW 25%, and GAC 25%. The merger would consolidate sister models into global vehicles and unify dealer networks for all Toyota models. GAC's A-shares remain suspended for up to 10 trading days. The announcement positions FAW as GAC's second-largest shareholder, though the specific joint venture name was not officially confirmed in the filing.
Source report
September 15 — GAC Group's H shares resumed trading on the Hong Kong Stock Exchange at 9:00 a.m. on September 15, along with related structured products, according to an announcement by the company.
During the pre-opening session, GAC Group's H shares surged more than 12%, reaching HK$2.62 per share, with a total market capitalization of HK$51.034 billion.
Major Asset Restructuring Announced
On the evening of September 14, GAC Group released a major asset restructuring announcement after suspending trading of both its A-shares and H-shares. The announcement stated that GAC Group and China First Automobile Group — the second-largest shareholder of GAC Group — are involved in the transaction.
The transaction is expected to constitute a major asset restructuring and a related-party transaction, but it will not result in a change of actual controller or a backdoor listing. The company's A-shares have been suspended from trading since the opening on September 14, 2026, with the suspension expected to last no more than 10 trading days.
Background: Merger of North and South Toyota Operations
According to earlier reports by Kuaikeji, the "certain joint venture vehicle company" mentioned in the announcement refers to FAW Toyota Motor Co., Ltd. This move signals that the merger of Toyota's north and south operations in China has entered a substantive stage.
Current Shareholding Structure of FAW Toyota:
- FAW Group: 50%
- Toyota Motor Corporation: 45.7706%
- Toyota Motor (China) Investment Co., Ltd.: 4.2294%
Proposed Merger Plan
The core plan for merging the north and south Toyota operations involves establishing a Toyota (China) Sales Company (proposed name), a model strongly advocated by Toyota's Japanese side.
The proposed shareholding structure of the new sales company is:
- Toyota: 50%
- FAW Group: 25%
- GAC Group: 25%
After the merger, sister models from both sides will retain only global models, and dealer channels will be fully integrated, allowing all Toyota models to be sold and serviced at any dealership.
Note: GAC Group did not disclose the name of the joint venture vehicle company whose shares it intends to purchase in the announcement. Further details should be confirmed with official sources.
Source: Kuaikeji
Source
东方财富网-市场快讯Eastern
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