Vala (HKG:2051) entered a model development agreement with a SAIC Motor (SHA:600104) unit to jointly develop a vehicle based on the latter's Dana model, the firm said in a Hong Kong bourse filing Monday.

The credit card management firm's shares fell by more than 1% in Hong Kong, while SAIC shares slipped almost 1% in Shanghai in early afternoon trade Tuesday.

Under the partnership, both sides will work to develop two versions of the vala house model: an all-electric version and an extended-range version.

Vala will be primarily responsible for designing model customization schemes and developing relevant specialized components, while SAIC Maxus RV Technology will be primarily responsible for vehicle technical verification and manufacturing.