Volvo’s European shares plunged 11% to a record low after Geely sold its shares at a discount.

  Source: Wall Street News

  After the sale, Geely will still hold 78.7% of the shares of Volvo. According to reports, the price of Geely’s related shares is about 37 Swedish kronor per share, and the total selling amount is about 350 million US dollars. The financial report released by Volvo last month showed that the company’s adjusted operating profit in the third quarter was 19.11 billion Swedish kronor, a year-on-year increase of 61%, far exceeding expectations.

  Geely will sell about 100 million shares of Volvo Cars. Geely said that the sale accounted for 3.4% of the issued share capital of Volvo Cars and 4.1% of Geely’s shareholding in Volvo. Before the sale, Geely held a series of shares in European automobile business, including 82% of Volvo;After the sale, Geely will still hold 78.7% of the shares of Volvo.

  According to media reports,Geely’s relevant shares were sold at a large discount, at a price of about SEK 37 per share, with a total sale of about US$ 350 million.

  Regarding the reason for the sale, Geely explained that this is in line with the company’s long-term strategy, which can increase Volvo’s liquidity and provide more opportunities for institutional and retail investors to create sustainable long-term value.

  Li Donghui, CEO of Geely, said in a statement released on Friday, "As a major shareholder, we are still firmly committed to continuing to support the transformation of Volvo Cars into an all-electric vehicle manufacturer, and we look forward to continuing this continuous success story."

  After the news of Geely’s massive sale was announced, Volvo Car’s share price plummeted 14% in intraday trading, hitting a record low of 35.25 Swedish kronor, which was close to Geely’s selling price in this transaction, and closed down 11% to close at 36.29 Swedish kronor. So far this year, Volvo’s share price has fallen by more than 23%.

  The financial report released by Volvo last month showed that the company’s adjusted operating profit in the third quarter was SEK 19.11 billion, a year-on-year increase of 61%, and the market expectation was SEK 16.27 billion.

  On November 12th last week, Volvo’s first pure electric MPV EM 90 debuted in China, with a price of 818,000 yuan. This car is built on the SEA platform, positioning pure electric medium and large MPV, with the longest battery life of 738 kilometers. Luo Wenjin, President and CEO of Volvo, said that EM 90 plays an important role in Volvo, bringing Volvo’s historical heritage in the security field and its industry-leading security technology into the new pure electric MPV market. Yuan Xiaolin, president and CEO of Volvo Car Asia Pacific, told Wall Street that the listing of EM 90 allowed Volvo to re-plan the once blank MPV range. Next, with the improvement of Volvo’s product array, Volvo’s New Year is coming.

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Ministry of Housing and Urban-Rural Development: Give cities full autonomy in real estate regulation, and cities can adjust their real estate policies according to local conditions.

On the morning of January 26th, the Ministry of Housing and Urban-Rural Development held the deployment meeting of the coordination mechanism of urban real estate financing. Ni Hong, Party Secretary and Minister of the Ministry, attended the meeting and stressed that the spirit of the Central Economic Work Conference should be thoroughly implemented, the coordination mechanism of urban real estate financing should be accelerated to be effective, the development and construction of real estate projects should be supported, the reasonable financing needs of real estate enterprises with different ownership systems should be met equally, and the stable and healthy development of the real estate market should be promoted.

The meeting demanded that we should adapt to the new situation that the relationship between supply and demand in the real estate market has undergone major changes, speed up the construction of a new model of real estate development, combine the long and short, treat both the symptoms and the root causes, and promote the stable and healthy development of the real estate market. It is necessary to adhere to the policy of the city, precise policy, one city and one policy, make good use of the policy toolbox, and fully give urban real estate regulation and control autonomy. Cities can adjust their real estate policies according to local conditions. (Yicai)