Geely Automobile Holdings Ltd.’s listing on Shanghai’s Star board hit a stalemate after China’s regulator questioned if it is tech enough for the bourse, according to Bloomberg. The company was approved for listing in September.
Geely’s endeavors come just as the China Securities Regulatory Commission is considering tighter rules for first-time Star board share sales.
CSRC wants to ensure firms have technology credentials and sound financial health to boost the quality of choice for investors and protect them.
The tighter rules by CSRC, which do not target any specific sector, are expected to make it harder for financial technology firms to list
Geely, which reported a 32% slump in net income in 2020, has been speeding up efforts to ink deals with technology firms.
The Chinese carmaker is investing $5 billion in a new electric-car battery plant and launching an EV brand, Zeekr, to take on Tesla Inc. and local upstarts.
The company sold about 68,000 new energy vehicles last year, or around 5% of its total, short of a goal to have 90% of sales consist of EVs by 2020.
Geely’s Hong Kong-traded shares have risen about 40% since early September when it first filed an application with the Star board.
Geely is currently declining. 0175: HKG is down 6.63%
