Shanghai (ZXZC)- Chongqing Changan Automobile Co., Ltd (Changan Auto) released an announcement on May 31, saying that the State-owned Assets Supervision and Administration Commission of the State Council has approved China South Industries Group Co., Ltd. (CSGC) to take 1,035,312,673 A-shares, or 21.56% of Changan Auto's total shares gratis, which previously were held by China Changan Automobile Group (China Changan). 

According to the announcement, Changan Auto stated as early as on March 16 that the company's free stakes transfer aims to enhance and optimize its automobile businesses, helping promote the development of Changan Auto. Meanwhile, CSGC is willing to accept the 21.56% of Changan's total shares. However, the stakes transfer should be reported to and be approved by the State-owned Assets Supervision and Administration Commission of the State Council.

On May 30, CSGC received the approval from the State-owned Assets Supervision and Administration Commission of the State Council on Changan's free stakes transfer. After the implementation of stakes transfer, CSGC still rein in Changan Auto, because China Changan is the wholly-owned subsidiary of CSGC. Specifically, China Changan is still the controlling shareholder with a total of 1,035,312,674 shares, or 21.56% of Changan Auto's total shares. CSGC also hold 21.56% of Changan Auto's total shares, or 1,035,312,673 shares, which is only one share less than that of China Changan.