China's business press carried the following stories on Monday. China.org.cn has not checked the stories and does not vouch for their accuracy.

BAIC Group to convert to joint stock company - Beijing Business Today

BAIC Group, China's fifth largest automaker, plans to convert itself into a joint stock company in June, Beijing Business Today reported Monday, citing sources close to the matter.

Last week, foreign media reports cited BAIC President Wang Dazong saying the company plans to restructure its passenger car businesses over the next two months in preparation for going public on the Shanghai or Hong Kong stock exchanges.

BAIC did not confirm these reports to Beijing Business Today.

In early 2008, the Beijing municipal government approved BAIC's plan for public listing. Industry insiders said BAIC had planned to set up the shareholding company in January this year. But the plan was delayed by the company's US$200-million purchase of SAAB technologies at the end of last year.

Sources said BAIC will inject quality assets into the joint stock company once it is set up. The joint stock company, which is expected to being operation before the end of the year, will include a passenger car department, a research institute, an engine assembly department, a new energy department and an investment management department.

China to announce subsidies for new energy cars - Shanghai Securities News

China may announce a subsidy policy for private purchases of new energy cars before the end of the month, Shanghai Securities News reported Monday.

According to the report, the proposal for new-energy car subsidies has been approved by several commissions and ministries and has been submitted to higher authorities to review.

Sources said that the government will offer different subsidies based on the energy efficiency of the vehicle. Individual customers who purchase gasoline hybrid electric cars will be given 3,000 yuan per car. Buyers of plug-in hybrid electric cars and pure electric cars may qualify for up to 50,000 yuan and 60,000 yuan per car, respectively.

Despite the subsidies, experts think that it will take 5 to 15 years for green cars to become popular.

Morgan Stanley to sell stake in CICC - Shanghai Securities News

Morgan Stanley informed China's securities regulator on May 4 that it plans to sell its stake in China International Capital Corporation (CICC) and expects to be given the green light for the sale within three months, Shanghai Securities News said Monday.

Industry insiders said that it's almost certain that the China Securities Regulatory Commission will approve Morgan Stanley's share sale, which is expected to proceed in July.

Market rumors indicate two private equity funds, Kohlberg Kravis Roberts (KKR) and TPG, will purchase the 34.3-percent stake in CICC for US$1 billion on a 50-50 basis.

When the sale is complete, Morgan Stanley plans to set up a joint venture investment bank with China Fortune Securities, a Chinese brokerage.

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