(Bloomberg) -- Dongfeng Motor Group Co. surged in Hong Kong after unveiling plans to also list on the mainland, the latest example of such intentions providing a big boost to a Chinese firm's existing shares.
The automaker rose a record 27% on Tuesday before closing 14% higher, the most since September 2015, on volume more than eight times the three-month average. Dongfeng's board approved a plan to list on Shenzhen's ChiNext board, which will soon see the first batch of listings under relaxed rules.
The move comes amid a wave of offshore-traded Chinese companies returning to home listings, thanks to authorities' efforts to attract high-tech firms to local exchanges and escalating Sino-U.S. tensions that have made American bourses a less appealing destination for some.
Such plans for an A-share listing have generally been well-received, adding more to companies' incentive to sell shares onshore.
Semiconductor Manufacturing International Corp. has soared more than 70% in Hong Kong since announcing in early May it would seek a listing on Shanghai's high-tech Star board. The new stock more than tripled in its debut. Geely Automobile Holdings Ltd. has advanced some 34% since disclosing its plan last month to list on the same venue.
Dongfeng's deal proceeds would go toward projects including high-end new energy vehicles, the company said in a late Monday exchange filing. The A shares wouldn't make up more than 10% of Dongfeng's enlarged share count. The company's market value reached HK$50 billion ($6.5 billion) with Tuesday's stock gain.
©2020 Bloomberg L.P.
With assistance from Bloomberg
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