Guangzhou Automotive Industry Corp, the parent of Hong Kong-listed Denway Motors, has delayed its listing on the Shanghai stock exchange for three months because of weak market sentiment towards share offerings and a complicated internal restructuring, according to market sources. The delay means the listing will not proceed before September at the earliest. The carmaker had originally applied for permission from the China Securities Regulatory Commission to list in January and had hoped to complete the Shanghai listing by the end of next month, before listing in Hong Kong within six months of its Shanghai trading debut. Guangzhou Auto planned to raise about 4 billion yuan (HK$4.46 billion) in the mainland market for capacity expansion and plant building, a source said. 'As the firm has set up some joint ventures with Honda and Toyota, it has taken longer to get approvals from the two Japanese firms for those assets that will be included in the listing vehicle,' another source said. Guangzhou Auto, the country's sixth-largest carmaker which assembles Toyota Motor Corp's Camry and Honda Motor's Accord and Odyssey, is also working with the two partners to build hybrid cars. 'A weakening market environment has discouraged firms from raising new funding,' the source said. Twenty-one initial public offerings on the two mainland exchanges had raised US$8.7 billion for the year to early April, down 1.9 per cent from the same period last year, after hitting a record in calendar 2007. As of early last month, there were nine fewer offerings than in the same period last year, Thomson Reuters said. 'Guangzhou Auto is expected to sell shares cheap to lure investors,' a market source said, adding that some new listing candidates had failed to sell shares at the maximum price-earnings valuation of 30 times over the past two months. 'Despite a poor IPO market globally, the firm never dropped its plan to sell shares in Hong Kong. An international listing can help build a better company image and broaden the investor base,' a source said. The Shanghai Composite Index has lost 32.33 per cent since the start of the year, dropping below the 3,000-point level in intraday trade on April 22 - almost 50 per cemt off the peak of 6,092.057 on October 16 last year. The index closed 1.84 per cent lower at 3,560.243 points yesterday. China International Capital Corp and GF Securities are advising the A-share offering. The two mainland investment banks are also responsible for the H-share offering, along with JP Morgan, Goldman Sachs and Lehman Brothers.