Bank drives up stake in Yutong
By Yu Qiao (China Daily)
Updated: 2006-06-15 09:00
Germany's biggest lender Deutsche Bank AG has raised its stake in Zhengzhou
Yutong Bus Co Ltd, the Chinese partner of German engineering group MAN AG, to
5.21 per cent.
Yutong said so yesterday in a statement to the Shanghai Stock
Exchange.
The figure was up from 1.25 per cent in the first quarter of
this year.
Yutong, one of China's top large- and medium-sized bus
producers, based in Henan Province, said the bank held 20.84 million of its
yuan-denominated shares by the time the stock market closed on
Friday.
Yutong runs a joint venture with MAN AG in Zhengzhou, the capital
city of Henan, to assemble bus chassis and spare parts.
Yutong didn't
reveal how much the German lender paid for the bigger stake. The bus maker's
stock ended at 7.91 yuan (99 US cents) per share yesterday, jumping 4.35 per
cent.
Deutsche Bank is now the second biggest shareholder of Yutong after
Yutong Group, an industrial conglomerate in Henan which holds 27.65 per cent of
the Shanghai-listed Yutong.
Deutsche Bank is one of the qualified foreign
institutional investors (QFIIs) approved by Chinese regulators to buy
yuan-denominated stocks and bonds. It now has a quota of US$400 million,
according to the State Administration of Foreign Exchange.
Analysts said
the move taken by the German lender signals QFIIs' mounting interest in
well-performing mainland stock. Such shares are also being boosted by a strong
yuan.
"It is a natural profit-taking move in the stock market for
Deutsche Bank to lift its stake in Yutong as the latter is a bus market leader
in China with a sound profitability and cashflow," said Zhang Xin from Guotai
& Jun'an Securities Co Ltd, based in Beijing.
Yutong reaped a net
income of 34.5 million yuan (US$4.3 million) in the first quarter of this year,
up 23.7 per cent from a year ago. Its turnover rose by 20 per cent.
(For more biz stories, please visit Industry Updates)
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