When shares in Daimler’s China joint venture partner begin trading in Hong Kong later this week, the listing’s sponsors are hoping that investors will be reminded of another stock that has soared by virtue of its association with German manufacturing excellence.
For Beijing-based BAIC Motor, China’s fifth-largest domestic carmaker, comparisons with Brilliance China Automotive are flattering. Since Brilliance Auto was selected as BMW’s China partner in March 2003, its Hong Kong shares have risen more than 800 per cent.
For early investors in Brilliance Auto, the timing was perfect. The company’s manufacturing joint venture with BMW, based in Shenyang, was up and running just in time for China’s emergence as the world’s largest car market. Last year, passenger car sales in the world’s second-largest economy reached 18m units, compared with 15.6m in the US.