Dongfeng stock soars while FAW plunges this June
Gasgoo.com (Shanghai June 28th)–This June, shares of Dongfeng Passenger Vehicles Company have soared 20% by June 23rd on several major orders in alternative energy vehicles, strategic cooperation with a power company, and the company’s plan to shake off bad assets of Zhengzhou Nissan, since June 7th, which reflecting the investors’ confidence in this Chinese auto manufacturer.
On June 14th, Dongfeng made an announcement in accordance with the requirements in the Guidelines of Shanghai Stock Exchange for the Listed Companies, saying that the company, the controlling shareholder and the actual controllers haven’t concealed any important information that should have been disclosed, including but not limited to mergers and acquisitions, issuance of shares, debt restructuring, business restructuring, asset stripping, asset injection.
However, by June 23rd, shares in FAW Car Co. and Tianjin FAW Xiali Automobile Co, two units of State-owned FAW Group Co, have plunged 18.6% and 26.7% respectively after the group violated its vow to end horizontal competition.
According to a statement issued by FAW on June 4th, the group will extend by three years its deadline to eliminate horizontal competition among itself and the two Shenzhen-listed units.