Brilliance China Automotive sinks as Renault JV faces financial problems

Brilliance China Automotive Holdings

12/04/2023 05:03

** Shares of China's Brilliance China Automotive Holdings
Ltd  1114.HK  drop as much as 13% to HK$3, their lowest since
Nov. 10 and on course to snap two sessions of gains
    ** Third biggest pct loser in the Hang Seng Composite Index
 .HSCI 
    ** Co says Renault Brilliance Jinbei Automotive, its joint
venture (JV) with Renault  RENA.PA , is facing financial
problems and has not been able to meet its financial obligations
    ** Co proposes to inject up to 1.36 bln yuan ($197.44 mln)
in cash as part of a restructuring of the JV, to resolve the
immediate financial difficulties and resume production
    ** Says the proposed capital contribution will be funded by
the internal resources and the co will conduct feasibility study
to introduce new potential strategic partners to the JV
    ** Hang Seng Commerce & Industry Index  .HSNC  falls 1.4%, 
Hang Seng Composite Index slips 0.6% and Hang Seng Index  .HSI 
eases 0.7%

($1 = 6.8882 Chinese yuan renminbi)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))