GAC Group repurchases shares, boosts financial flexibility

Guangzhou Automobile Group (GAC Group) [SSE:601238] recently disclosed a repurchase of 118.4 million H-shares at HKD 3.42 per share, impacting roughly 4% of outstanding shares. This buyback is part of a broader strategy to enhance shareholder value. Concurrently, GAC Group's board approved plans for its financial arm, GAC Finance, to issue up to RMB 18 billion in asset-backed securities (ABS), capitalizing on favorable interest rates. Subsidiary GAC Capital is also cleared to issue up to RMB 1 billion in corporate bonds to bolster its finances. These financial actions signal GAC Group's strategic approach to strengthen internal capital management and financial flexibility, and the board also approved revisions to related internal management and assessment plans, signalling a strong emphasis on strategic financial maneuvers for 2025.