China’s Great Wall Motor Co. reduced its A-share sale plan by 29 percent after a stock rout wiped out $5 trillion from the nation’s equity markets.
The Hebei province-based company cut the size of its offering to as much as 12 billion yuan ($1.9 billion) from a planned 16.8 billion yuan announced in July, it said in a statement to the Hong Kong stock exchange Friday. First-half net income increased 19 percent from a year earlier to 4.72 billion yuan, the company said in a separate statement. The profit missed analysts’ estimate of 4.9 billion yuan in a Bloomberg survey.
The revised share sale plans come after the Shanghai Composite Index slumped 37 percent from its June 12 peak. The gauge surged 4.8 percent on Friday, rising for a second day, amid speculation that authorities were supporting equities before a World War II victory parade next week that will showcase China’s military might.
Great Wall’s Hong Kong-listed shares jumped 9.6 percent, the most since April 2013, before the company released the earnings report on Friday. Its Shanghai-listed A-shares gained 4 percent.
— With assistance by Tian Chen