GAC Group (HKG: 02238) climbed more than 5% during the afternoon session, with shares last trading 4.78% higher at HK$2.52 on turnover of HK$30.12 million.

In a recent announcement, GAC Group revealed plans to acquire a stake in a vehicle joint venture held by FAW Group through a share issuance, alongside raising supplementary capital. The transaction remains in the planning phase, but if completed, FAW is expected to become GAC Group's second-largest shareholder with significant strategic influence.

Market speculation suggests the restructuring target is likely FAW's stake in FAW Toyota. BOC International noted that while the current announcement refers to "partial equity in a joint venture held by FAW," the final outcome will probably see GAC Group securing a majority, or even all of the 50% stake currently held by FAW.

Rumors of a merger between the two Toyota joint ventures in China have circulated for some time. In late 2025, Toyota's Japanese side attempted channel optimization in select lower-tier cities, though the model was not widely rolled out. The current restructuring of the two Toyota joint ventures is expected to go beyond channel and sales synergies, extending to centralized procurement, supply chain cost management, and deeper collaboration in joint R&D and model development.