The reality is Creat and Fengli, based on Jiangsu province may not have capital to continue to back the co. Suntech, one of the largest solar co based in Jiangsu, who filed for bankruptcy in March this year is also Jiangsu based. There is another thread in GXY that gives more detail about problem in Jiangsu.
I am suspecting that Jiangsu provincial government and companies that are affiliated to the government is currently running short of capital. The other major shareholder/debtholder Li Shufu of Geely Auto, is still in relatively strong financial position I believe.
For current shareholders' sake, I am hoping that other long term auto battery manufacturer or ecar maker will be wooed to come in to compete for control. At the moment, the strong bidders seem to be Li Shufu and Deutsche Bank and there is no competition in sight. If M&G(Prudential) & Vanguard, that together holds >31% applied for the shortfall, then share price should get some support.
If "China", the only country that has very strong govt support for electric car, is the clear winner, it makes sense that institutional support would be strong. The reality is probably battery grade lithium demand is still not strong enough yet and there is no under supply at the moment.
Under current capital market, we need a strategic shareholder like Koreans and the Japanese to show stronger interest.
If VW's latest concept car that runs 100km/l become mainstream, then all bets on e-car is off.
China is no clear winner in solar panel manufacturing but ironically, we need China to be clear winner for Gxy.
GXY Price at posting:
7.8¢ Sentiment: None Disclosure: Not Held
