» » Chinese state-owned automaker FAW Group gets $144 billion credit line

Chinese state-owned automaker FAW Group gets $144 billion credit line

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FAW stated that in its report on social networks, it would like to consolidate its cooperation with banks, create an open and innovative financial platform and provide funding for FAW initiatives in the future.

According to the FAW source, the credit line is part of the government’s plan to revitalize the economy of China’s northeastern provinces, refusing to determine that the source is not authorized to speak publicly on this issue.

The China National Development and Reform Commission announced plans to increase the rustbelt triumph in January, the latter in a long series of efforts to help the region, but the announcement did not mention FAW at the time.

Shares in two FAW blocks, FAW Car Co Ltd (000800.SZ) and Tianjin FAW Xiali Automobile Co Ltd (000927.SZ) jumped 10% after the daily credit line news.
FAW has a joint venture with Volkswagen (VOWG_p.DE), which manufactures VW and Audi cars, and the other with Toyota (7203.T), which builds the Crown and Corolla models.

The 16 banks in agreement with FAW include China Development Bank, China Construction Bank (601939.SS), Bank of China (601988.SS), and Industrial and Commercial Bank of China (1398.HK).

China's economy slowed to the weakest quarterly pace after the global financial crisis in the third quarter, data from last week showed that it suffered from the weakest factory output since February 2016, as automakers reduced production due to slower sales.

The numbers came as regulators are moving quickly to calm nervous investors as a multi-year campaign against debt risks, and the trade war with the United States began to bite.


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