China Southern Auto Holdings Corp., a newly formed firm which holds 52.47 percent of Chongqing Chang'an Automobile Co. Ltd., is preparing an overseas listing, its chairman said.

Market watchers had said the initial public offering could raise as much as US$500 million. But the offering has to wait for reform of Chang'an Auto's nontradable shares to be completed.

"China's auto sector will continue to consolidate. " the chairman of the company said.

State-owned China Southern Industry Group, the parent firm of Southern Auto Holdings, will hold 24 percent in CMA Logistics after its Growth Enterprise Market listing Feb. 23.

The Chongqing-based firm expects its earnings to increase 29 percent to 55 million yuan (US$6.84 million) in 2005, from 42.6 million yuan in 2004.