Glonghui, June 2 丨 Dahe published a report saying that the purpose of Brilliance China (1114.HK)'s sale of 0.44% of its shares is to facilitate Brilliance's possible sale of shares to the Shenyang State-owned Assets Administration Commission during the restructuring, because if the shareholding ratio falls below the 30% threshold, it will not trigger a forced transfer of shares to minority shareholders. It also believes that this will help the Shenyang State Assets Administration Commission to acquire 29.99% of Brilliance's shares at a level below cash, complete the restructuring and regain control of the company. This will also enable the Shenyang State-owned Assets Administration Commission to use Brilliance's abundant cash balance for any future investments. Since the Shenyang municipal government is expected to take back control of the company, Daiwa expects the listed company's cash to be used for future investments rather than dividends; the bank expects the investment period to be several years, using current cash balances and future cash from Brilliance BMW for continued capital investment. The bank downgraded Brilliance China's rating from “hold” to “sell” in one fell swoop, and cut the target price from HK$3.5 to HK$2. However, it raised its earnings per share for the 2024-25 fiscal year by 0.3 to 13% because the bank was more positive about BMW Brilliance's profit growth prospects. The stock is currently reported at HK$53.01, with a total market value of HK$15.2 billion.