BEIJING, June 7 -- Shanghai of Shanghai Automotive Co, the publicly traded unit of China's largest automaker, yesterday surged its daily limit in Shanghai on speculation the company's parent may sell shares in an initial public offering.

    Shares of Shanghai Auto, which makes components for the Chinese ventures of Volkswagen AG and General Motors Corp, rose as much as 10 percent to 5.94 yuan. The shares were on course to achieve their highest closing price in more than 18 months. SAIC Motor Co, Shanghai Auto's parent, has been planning an IPO for about two years to raise about US$1 billion, people familiar with the plan said last year.

    (Source: Shanghai Daily)