By staff reporter Ouyang Changzhen

China's largest auto conglomerate, the SAIC group, may be injecting its auto parts assets into Shanghai Bashi, enabling it to be used as a listing vehicle in the stock market.

According to a statement from Shanghai Bashi Industrial (Group) Co (SEE: 600741), Shanghai's municipal government has approved the company's plan to spin off its public transport assets and inject part of SAIC group' assets into Shanghai Bashi.

Since the group's car making assets were listed through SAIC Motor Corp (SEE: 600104) in 2006, analysts believe SAIC group will likely inject its auto parts manufacturing assets, reportedly valued around 10 billion yuan (or ＄1.4 billion), into Shanghai Bashi.

As of now, SAIC group has 25 auto parts subsidiaries including Shanghai Sachs Powertran Components Sysiems Co. Ltd., Shanghai Sekely Die Technology Co. Ltd and Shanghai Sandmann Foundry Co. Ltd..

Analysts are predicting SAIC group's assets to be injected into Shanghai Bashi include Donghua Co., jointly held by SAIC group and Yuejin Motor Group.

As of May 16, trading of Shanghai Bashi's stocks has been suspended.

1 yuan = 14 U.S. cents