Hong Kong-listed automakers broadly declined this morning, in particular GREATWALL MOTOR (02333.HK) -2.500 (-10.225%) Short selling $235.33M; Ratio 25.457% , which delivered little-shy 1Q results. The stock once slumped almost 15% to $20.9. It last posted at $22.2, down 9.2%, after Citigroup had downgraded it to Neutral with target axed to $24.9.
Affected by the shortage of chip supply, Great Wall Motor encountered the bottleneck of production capacity. In May and June, the two major production bases of Chongqing Yongchuan and Xushui are expected to face the shutdown of production, which would affect various popular models including Haval H6, Great Wall POER and TANK 300. To ensure the timeliness and fairness of information disclosure and safeguard the interests of investors, the board of directors of the Company has promptly conducted a thorough investigation to verify the relevant facts.
After investigation, the above news report is not true. The two major production bases of the Company, Chongqing and Xushui, have no plan to stop production. At present, the Great Wall Motor is facing a shortage of chip supply. The production by certain factories have been affected to certain extent, but none of them has stopped production.