China's state-backed Dongfeng Motor skyrockets to 8-year highs as parent to take automaker private

Shares in China’s Dongfeng Motor Group

skyrocketed to hit their highest level since 2017 as they resumed trading Monday, after the company’s parent announced on Friday plans to take the automaker private.

Dongfeng Motor Group’s Hong Kong-listed stock surged 69%, before paring gains to trade at over 57% higher, with Reuters reporting the take-private deal values the company at about $7 billion.

The Wuhan-based company is also preparing to spin off and list its electric-vehicle unit, VOYAH, in Hong Kong.

Trading in the company’s shares was halted between Aug. 11 and Aug. 22 as Dongfeng had flagged a possible key announcement.