Shanghai (ZXZC)- FAW Xiali plans to transfer its 15% stake in Tianjin FAW Toyota to FAW Group Corporation, another stakeholder of Tianjin FAW Toyota, according to FAW Xiali’s announcement. If the transaction can be completed, FAW Group will own 50% stake of Tianjin FAW Toyota. Further information for disclosure will be announced in due course.

Tianjin FAW Toyota Motor Co. Ltd, is a joint venture which is founded by China FAW Group Corporation (FAW), Tianjin FAW Xiali Automobile Co., Ltd, Toyota Motor Corporation and Toyota Motor (China) Investment Co., Ltd in 2000. FAW Group and Toyota Motor will hold 50% stake respectively as long as FAW Xiali transfers its stake to the Group.

On October 25, FAW Group announced that it has signed strategic cooperation agreements with 16 banks for a credit line worth more than 1 trillion yuan. FAW Group said it will cooperate extensively with the banks in financing, cash management, international finance, new energy, intelligent connectivity and development of its premium car brand Hongqi.

Afterwards, FAW Xiali’s stock hit limit-up for two consecutive trading days. Today, the stock closed at RMB 3.69, up 7.49%. FAW Xiali emphasized that the credit line is the amount of credit that they are allowed by a bank not the actual amount one gets from a bank. Besides, the agreements between FAW Group and the banks are frameworks, so they don’t have much immediate impact on FAW Xiali.