Brilliance Auto’s H-share price surged by 14.8 percent on Jan. 3 upon the aforesaid market hearsay, which hit a 52-week high of 1.67 Hong Kong dollars per share to closed at 1.63 Hong Kong dollars per share.

Market insiders believe that it’s unlikely for BMW to make the share acquisition in a short term. But possibility exists for Brilliance Auto Group to absorb Brilliance-BMW, the JV between Brilliance Auto and BMW, into its listed company so as to raise capital for the company’s future development.

The parent firm is thirsty for capital to expand capacity and carry out R&D activities. The company has set its sales goal in the year 2008 at 500,000 units, aiming to reap 80 billion yuan of revenue, which is far beyond its current capacity.

Qi Yumin, president of Brilliance Auto’s group company, disclosed earlier that the company is aiming to collect capital of some 8.3 billion yuan.

Brilliance Auto’s auto sales surged by some 80 percent in 2006 to exceed 200,000 units. Sales of Zhonghua cars skyrocketed by 545.8 percent in the period and that of Brilliance-BMW cars also obtained a growth of some 40 percent. (Edited by Sun Huanjie, )