Geely closes in on Aramco deal

Renault and Geely Automobile (0175) are said to be working to finalize a deal to bring Saudi Arabian state oil producer Aramco in as an investor and partner to develop and supply gasoline engines and hybrid technologies.

The Saudi giant was said to have been involved in advanced talks to take a stake of up to 20 percent in a powertrain company with a production capacity of more than five million "low-emission and hybrid engines and transmissions" annually.

Geely's shares fell by 1.88 percent to HK$11.50 yesterday.

That came as Xpeng (9868) cut starting prices by 12.5 percent to 209,900 yuan (HK$242,203) for its best-selling pure electric P7 sedan and by 10 to 13 percent for all P5 sedan and G3i SUV versions. Its stocks closed 2.34 percent down at HK$37.50.

China Yongda Automobiles Services (3669) expects its profit for last year to tumble 43 percent at the most from the previous year amid Covid disruptions.