(Yicai Global) June 28 -- Shares in Geely Automobile Holdings slumped 2.11 percent today after the Chinese auto giant withdrew its application for a secondary listing on the Shanghai Stock Exchange’s Nasdaq-style Star Market last week, saying that it will revisit the plan when conditions are right.

Geely Auto's share price [HKG:0175] closed at HKD25.50 (USD3.30).

In view of the healthy business operation of parent Zhejiang Geely Holding Group, the withdrawal of the proposed Chinese yuan share issue on the Star Market will not give rise to any material adverse impact on the financial position or operations of the group, Geely Auto said in a filing to the Hong Kong bourse on June 25.

No specific reasons were given, though Bloomberg News reported in March that Geely Auto’s push to list on the Star board has hit a snag with China’s stock market regulator questioning whether the Hangzhou-based company is high-tech enough for the bourse.

Geely Auto first announced its intention to list in Shanghai in September last year, aiming to raise CNY20.4 billion (USD3.2 billion). Some CNY8.4 billion (USD1.3 billion) will go toward research and development of new models, CNY3 billion each on forward-looking technology and industrial acquisition projects and the remaining CNY6 billion will be used to supplement working capital, it said at the time.

Meanwhile, Geely's premium electric vehicle brand Zeekr will set up its global headquarters in Ningbo, eastern Zhejiang province, the group said on June 25.

Zeekr Intelligent Technology, 51 percent owned by Geely Auto and 49 percent by the parent firm, will explore external financing solutions to accelerate the company’s future sustainable development, it said.

Editor: Kim Taylor