Brilliance Rises on Optimism About BMW 5 Series: Hong Kong Mover
Brilliance China Automotive Holdings Ltd (114) had the biggest two-day gain in a year in Hong Kong trading after Sina.com said sales of new sedans by partner Bayerische Motoren Werke AG will begin next week in Beijing.
The automaker rose 4.9 percent to HK$12.54 in Hong Kong trading today, bringing the two-day gain to 11 percent, the most since Sept. 17, 2012. The benchmark Hang Seng Index (HSI) slipped 0.3 percent today.
Brilliance is scheduled to kick off sales of its new BMW 5 series in Beijing on Sept 23, the Sina.com news website reported today, without saying where it got the information. The German partner of Brilliance said earlier this month that China sales jumped 35 percent last month, outpacing Daimler AG’s Mercedes-Benz and Volkswagen AG (VOW)’s Audi.
“The new Mercedes E class is making less of a splash than some had expected,” Janet Lewis, an analyst at Macquarie Group Ltd., said in an e-mail. “Our view has always been it wouldn’t take share from the BMW 5 series.”
Brilliance, based in Hong Kong, didn’t immediately respond to an e-mailed request for comment.
The three German luxury automakers, which all build cars in China, have quadrupled local production in the last five years and now account for about 75 percent of the premium cars sold in the world’s biggest auto market, according to industry researcher LMC Automotive.
Brilliance is seeking government approval to start the third phase of its assembly plant in Shenyang in northeast China and boost its annual production capacity to 400,000 vehicles.
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