China Regulator Fines Parent Of BMW Partner Over False Accounting
(Nikkei Asia) China’s securities regulator has fined Huachen Automotive Group Holdings and a group of current and former executives almost $9 million over false and incomplete disclosures made during bond sales by the bankrupt corporate parent of BMW’s local joint venture partner.
Last week, Brilliance China Automotive, BMW’s Hong Kong-listed partner, revealed that it had discovered that subsidiaries had guaranteed 5.89 billion yuan ($905.91 million) in Huachen bank borrowings without authorization.
The latest disclosures involve two Shanghai-listed units of Huachen, car parts maker Shenyang Jinbei Automotive and Liaoning Shenhua Holdings, an auto distributor and retailer.
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What happened
Shares of
XPeng (NYSE:XPEV) rose 12.5% in January, according to data from S&P Global Market Intelligence. The stock gained ground as the Chinese electric vehicle (EV) company announced a new partnership and received favorable coverage from analysts.
The automaker announced on Jan. 3 that it was collaborating with Livox to bring the company s lidar detection technologies for autonomous driving to XPeng s 2021 vehicles. Citi bank analyst Jeff Chung published a note on the stock the following day, maintaining a buy rating and putting a $57.71 per share one-year price target on the stock.
Image source: XPeng.
So what