Great WallĄ¯s stock price falls severely as investors remain cautious
Gasgoo.com (Shanghai July 23) -Following Great WallĄ¯s proposal to gather 16.8 billion RMB ($2.76b) in funding and its announcement that it would resume trading, the manufacturer has met with poor results on the stock market. According to its latest announcement, Great WallĄ¯s A-share value fell over 20% from July 14 to July 16, which is far from the level of normal fluctuations.
Gathering funds for new energy vehicle and smart car technology is crucially important for Great Wall to revitalize its business. However, investors are primarily interested in how to maintain sales and profits. Giving the declining growth rates of the Chinese passenger automotive market in recent months, both Sino-foreign joint ventures and own brands have been under a great deal of pressure to attract new buyers.
An analyst explains that Great WallĄ¯s recent push to enter the new energy vehicle market has been due to market pressures, the increasing price of fuel and other factors. However investors remain wary of the new proposal, as they are unsure whether it will allow Great Wall to succeed financially.
According to Great Wall CEO Wei Jianjun, the manufacturer is planning to release its first new energy vehicle in 2017, as well as set up its new energy vehicle platform in 2025.
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