BAIC plans backdoor listing of EV subsidiary

SHANGHAI/HONG KONG - China's State-backed Beijing Automotive Group (BAIC) will take its electric vehicle unit public by injecting it into another listed subsidiary, boosting its financial muscle as the battle for the country's fiercely contested green energy car market heats up.

The de facto backdoor listing values the unit, Beijing Electric Vehicle Co, at $4.5 billion. The move comes as the government engineers a dramatic shift away from conventional gasoline cars, with strict quotas for electric and hybrid vehicles set to come into effect next year.

The shift has prompted major investment and a spate of deals between global automakers, technology firms and local rivals, as companies rush to bring out new vehicle models and set up local ventures and facilities in the world's biggest car market.