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"For it to work, it has got to be something that has wider ownership and acceptance than just being a Beijing initiative," he said.

"For carmakers, sales matter, but IPOs do not help sales," said Yale Zhang, managing director of Shanghai-based consultancy firm Automotive Foresight.

"Gabi's long-term goal is to expand beyond Hong Kong and reach out to the Chinese mainland and Singapore."

"For the government, it is important to support leading private businesses to keep expanding their volume of equity financing and to establish a more tiered capital market to boost the financing capacity of manufacturers," said the acting dean.

"Fierce market competition is expected in China, as more opportunities and government's favorable policies are within sight," Song said, adding better products with lower prices will come along and bring more benefits to consumers.