The Zhitong Finance App learned that GAC Group (02238) rose more than 5% in the afternoon. As of press release, it rose 4.78% to HK$2.52, with a turnover of HK$301.153 million.

According to the news, the GAC Group recently announced that it plans to purchase some of the shares in an automobile joint venture held by FAW shares and simultaneously raise supporting capital. The deal is still in the planning stage. If completed, FAW Co., Ltd. is expected to become the second-largest and strategically influential shareholder of the GAC Group. The market speculates that the target of the restructuring is probably FAW-Toyota shares held by FAW.

Bank of China International pointed out that although the current announcement stated “some shares in the joint venture held by FAW Co., Ltd.,” we estimate that in the end, GAC will take most of the shares, or even 50% of the shares held by FAW. In fact, rumors about the merger between North and South Toyota have been around for a long time. At the end of 2025, Toyota and Japan tried to promote channel optimization and mergers in some low-tier cities, but the model was not widely promoted. This reorganization of the North-South Toyota Joint Venture will go beyond channel and sales collaboration and extend to a deeper level of centralized procurement, supply chain cost control, joint R&D, and model development.

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