(Yicai) Sept. 3 -- Shares of BAIC BluePark New Energy Technology rose after the Chinese carmaker said it is seeking as much as CNY10 billion (USD1.4 billion) from strategic investors for its electric vehicle subsidiary, aiming to bolster the unit’s development and competitiveness.

BAIC BluePark [SHA: 600733] closed 2.9 percent higher at CNY6.80 (96 US cents) a share in Shanghai today, after jumping by as much as 6.2 percent at one point.

BAIC BluePark's controlling shareholder BAIC Motor will contribute CNY2 billion (USD282 million) to promote the development of BAIC Beijing Electric Vehicle's various businesses, BAIC BluePark said late yesterday. The unit plans to publicly solicit additional investors at the China Beijing Equity Exchange by issuing new shares, it added.

The capital increase will be made based on BAIC BJEV's appraisal value of CNY25.7 billion at the end of last year, BAIC BluePark noted, adding that after the transaction, it will retain control of the subsidiary.

BAIC BluePark and BAIC Motor are owned by Chinese state-owned auto giant BAIC Group.

On Aug. 6, BAIC BJEV and Huawei Technologies launched their first jointly developed electric vehicle, the Stelato S9, as part of the tech behemoth's Smart Selection product ecosystem. The new auto is aimed at China’s premium sedan market and is priced from CNY399,800 (USD56,180).

BAIC BluePark has been losing money because of the fierce competition in China’s car market, the world’s biggest. Its net loss expanded to CNY2.6 billion in the six months ended June 30, from CNY2 billion a year earlier, while operating revenue sank 35 percent to CNY3.7 billion, according to its latest earnings report.

BAIC BJEV sold 13,076 vehicles last month, up from 7,878 a year ago, Beijing-based BAIC BluePark said on Sept. 1. Sales rose 12.2 percent to 52,068 in the first eight months of this year.

Editor: Martin Kadiev