BEIJING (Reuters) -- Chinese state-owned automakers Dongfeng Motor and FAW Group today halted trading in shares of their listed subsidiaries, with Dongfeng saying it checked into Chinese reports that the two companies would merge.
Dongfeng resumed trading in the afternoon local time, saying it investigated the matter and had not received any information from authorities.
Trading in Dongfeng Automobile Co., FAW Car Co. and Tianjin FAW Xiali Automobile remained halted. FAW said the stoppage in trading was due to media reports.
Dongfeng acknowledged that the media reports said Jilin province Vice Party Secretary Zhu Yanfeng would become Dongfeng chairman and that current Chairman Xu Ping would become the chairman of FAW Group.
Dongfeng and FAW are subject to the Chinese government's efforts to restructure inefficient state firms and have also been targeted in Chinese President Xi Jinping's effort to crack down on corruption.
FAW Group Chairman Xu Jianyi is under investigation for "violating party discipline," a euphemism for corruption, the Communist Party's lead disciplinary agency said in March.
The central government generally directs leadership changes and restructuring of major state-owned firms.
Yu Jiyang, an FAW spokesman, said there was no official information related to the chairmanship or a potential merger.
Dongfeng Motor has a 14 percent stake in PSA/Peugeot-Citroen and joint ventures with Nissan and Honda, while FAW has JVs with Volkswagen Group and Toyota.