Shanghai Automotive Co (SAIC) is believed to be looking to raise at least US$650m via a private placement, according to news reports.

Quoting state media and industry analysts, the news agency Reuters said SAIC - which owns a fifth of General Motors' car venture in China - would use the money to buy major assets from its parent, SAIC Motor Corp, one of China's top two vehicle makers.

Shanghai Securities News said SAIC Motor Corp had decided to fold its premium assets into its 67.66%-owned unit.

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