Q1 profits, Hongqi revival drive rally of FAW stock

The company has already begun marketing the car directly to governmental customers and has sold nearly 800 so far.

Heeding the central government's call to support domestic brands and avoid extravagance, a growing number of government bodies are choosing Chinese brands to fill out their fleets.

In April, the Hongqi L5 limousine was used to receive French President Francois Hollande during his recent visit to China.

Earlier this month, China offered Fiji 20 Hongqi cars in a bid to further strengthen bilateral ties with the South Pacific island country.

According to a report from Huatai Securities, it is likely that Hongqi's profile will grow in the domestic market in the next year or two, and it will become the only homegrown brand capable of competing with premium foreign brands.

FAW Group, the parent of FAW Car Co Ltd, is preparing an entire listing in the domestic stock market.

It has been reported that the assets of FAW Car and the parent group's partnerships with Volkswagen and Toyota will all be injected in the new listed company.

But the timetable is still uncertain now.

Cao He, an analyst with Minzu Securities, said in a recent note that the chances the group will be listed within the year are slim.

The report from Minsheng Securities warned that if the planned listing continues to be delayed, investors should expect the stock price of FAW Car to tumble.

On May 10, FAW Car's stock price closed at 13.73 yuan, a 3.24 percent decrease from the previous day.