(Yicai Global) June 29 -- Shares of Changan Automobile, China’s fourth-largest carmaker by sales, plunged by the daily trading limit from an all-time high after the firm’s actual controller called an early end to its stake reduction in the maker of Changan and Oshan vehicles.

After jumping 5.3 percent to CNY21.43 a share in the morning, Changan Auto [SHE: 000625] fell 10 percent before noon and closed at CNY18.32 (USD2.70). The stock has more than doubled in value since early last month on the back of Chinese government support for auto sales and after the carmaker inked a deal with Huawei Technologies on June 25 to make smart electric vehicles.

Over the past six months, state-owned China South Industries Group and persons acting in concert have trimmed their holdings in Changan Auto by 1.4 percent and have now stopped based on their financial situation, the carmaker said in a statement released around noontime today. The controller still owns nearly 40.2 percent.

Last December, Chongqing-based Changan Auto had said CSIG and its affiliates intended to pare their holdings by as much as 1.78 percent over the following six months due to their operational needs. CSIG has sold 0.52 of Changan Auto and its affiliate South Industry Assets Management 0.89 percent, cashing out CNY2.1 billion between them.

Yicai Global reported on June 27 that Changan Auto is boosting its electric offering. The company's smart electric vehicle brand Avatr is partnering with Shenzhen-based Huawei and Chinese battery behemoth Contemporary Amperex Technology to launch its first model in August and four more by 2025.

Editor: Emmi Laine, Xiao Yi