FAST NEWS: CIMC Vehicles to delist from Hong Kong on June 3

The Latest: Container truck manufacturer CIMC Vehicles (Group) Co. Ltd. (1839.HK; 301039.SZ) announced Thursday that its proposal to buy back all its Hong Kong-listed shares for HK$7.50 apiece has been accepted by shareholders, and the stock will cease trading at 4 p.m. on June 3.

Looking Up: By withdrawing from the Hong Kong stock market, the company will be able to save costs and fees associated with the listing and focus on its Shanghai listing.

Take Note: The delisting will deprive CIMC Vehicles of a major financing platform with access to foreign investors.

Digging Deeper: CIMC Vehicles makes and sells semi-trailers to customers in China, North America and Europe. It has been picking up speed since the pandemic, especially overseas. Economic policy stimulus and rapid transport growth have boosted its business in North America, while profits were stable in China and other markets. Despite that, poor performance for the company’s Hong Kong shares, which trade at a significant discount to its Shanghai-listed A-shares, led the company to decide to delist from Hong Kong.

Market Reaction: CIMC Vehicles’ Hong Kong-listed H-shares rose on Friday, closing up 2% at HK$7.47 by the midday break. It now trades in the middle of its 52-week range.

Translation by A. Au

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