Shares in Qingling Motors jumped 8.91 per cent yesterday as investors bet on a new lease of life for the embattled mainland truck maker.
Qingling Motors closed at HK$1.10, compared with a flat performance from the H-share index, after Japanese joint-venture partner Isuzu announced plans to boost Asian sales at the end of last week.
'Last Friday Isuzu said it would expand overseas production by 11 per cent, but it didn't specify which countries, nor which specific company will benefit,' Merrill Lynch analyst Grace Mak said.
Isuzu executives gave a bleak outlook for 2003 last week, but said they would be focusing on increasing sales in Asia, with plans to enter talks to boost their equity stakes in Qingling to at least 20 per cent, from the present 6.9 per cent, according to Japan's Jiji Press.
'There is lots of talk that there is going to be a restructuring of the whole group whereby they re-examine the product range and the co-ordination of the after sales,' an analyst said.
The analyst said the move was likely being pushed by Detroit-based giant General Motors, which holds a 48.4 per cent stake in the Japanese carmaker and has been disappointed with its performance.