China's largest private carmaker, Chery Automobile Co, said on June 4 it sold shares worth 2.9 billion yuan (US$425 million) to several domestic investors to fund new vehicle projects.
The investors include state-run China Huarong Asset Management Co. and other domestic institutional players, Chery said.
The proceeds will be used to fund a new sedan plant as well as a project to develop vehicles using alternative energy sources.
The company said with the current global financial crisis "Chery will seize the wonderful opportunity to develop itself and the new capital will fuel Chery's development."
The Wall Street Journal reported on June 2 that Chery in recent months has raised about two billion yuan by selling a 20% stake to investors.
Vehicle sales in China, which has overtaken the U.S. as the world's biggest auto market, hit a monthly record of 1.15 million units in April as government incentives continued to boost demand.
Copyright Agence France-Presse, 2009