Rumoured Volvo deal halts trading for Chinese automaker

Rumours of a potential deal for troubled Swedish automaker Volvo forced China's largest independent carmaker Geely Automobile to suspend trading of its shares on Friday.

The move came following reports that Geely was one of three companies interested in buying Volvo from US auto giant Ford.

Geely Automobile Holdings Limited said its shares were suspended Friday morning in a one line statement to the Hong Kong Stock Exchange that provided no further details.

The suspension comes a day after The Wall Street Journal reported Geely had “preliminary discussions” with Ford about buying its money-losing Swedish unit Volvo, citing “two individuals close to Geely and a person close to Ford”.

Geely spokesman Zhang Xiaodong told AFP on Thursday his company had not expressed interest in Volvo and that Geely was the subject of a persistent rumour.