GAC shares jump on FAW tie-up plans amid Beijing drive for car industry mergers

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Sep 15, 2026 #Audi, #Beijing, #BYD, #China Passenger Car Association, #CICC, #consolidation, #FAW Group, #Guangzhou Automobile Group, #Honda, #Hong Kong, #mergers, #Ministry of Industry and Information Technology, #SCMP Business, #Shanghai, #toyota, #volkswagen

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GAC shares jump on FAW tie-up plans amid Beijing drive for car industry mergers

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An Aion electric SUV from Chinese automaker Guangzhou Automobile Group. Photo: Xinhua

Themis QiPublished: 1:00pm, 15 Sep 2026Shares of Guangzhou Automobile Group (GAC) jumped after announcing plans to integrate resources with FAW Group, following Beijing’s call for consolidation amid weakening domestic demand.

GAC planned to acquire part of FAW’s equity in a joint venture vehicle manufacturer through a share issuance and raise supporting funds, the Guangzhou-based carmaker said in an exchange filing on Monday night, after a full-day trading halt.

Upon completion, the unlisted FAW would become GAC’s second-largest shareholder with strategic influence, with the controlling owner remaining unchanged, it added.

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