Semiconductor was established in October 2004, and BYD directly holds 72.3 percent of the shares, making it the controlling shareholder of the company.

(Image credit: BYD Semiconductor)

BYD Semiconductor, BYD's chip business, has gained new progress in its China A-share listing, with the Hong Kong Stock Exchange (HKEx) giving the nod.

BYD said in an announcement Monday that the HKEx has given its consent to spin off its subsidiary BYD Semiconductor to ChiNext and agreed to exempt the company from providing guaranteed quotas to shareholders.

The spin-off will further enhance BYD Semiconductor's multi-channel financing capability and brand effect, and lay a solid foundation for it to become an efficient, smart and integrated new semiconductor supplier, the announcement said.

BYD Semiconductor was established in October 2004, and BYD directly holds 72.3 percent of the shares and is the controlling shareholder of the company. BYD founder Wang Chuanfu indirectly controls BYD Semiconductor through BYD.

BYD announced on June 30 that its application to spin off BYD Semiconductor to ChiNext was accepted by Shenzhen Stock Exchange.

BYD Semiconductor will continue to engage in the R&D, production and sales of power semiconductors, intelligent control ICs, intelligent sensors and optoelectronic semiconductors.

BYD Semiconductor will focus on automotive-grade semiconductors in the future and promote the development of semiconductor businesses in industrial, home appliance, new energy and consumer electronics, and is committed to becoming a new type of efficient, intelligent and integrated semiconductor supplier, the company said.

The process was suspended on August 18 when Beijing Tianyuan Law Firm, which served BYD Semiconductor's IPO process, was investigated by the China Securities Regulatory Commission.

According to a report by on September 6, Tianyuan has issued a review report and the Shenzhen Stock Exchange has resumed the review of BYD Semiconductor's offering for listing.

BYD Semiconductor can now move forward with the IPO process and therefore did not change its original law firm, according to the report.

After last year's Series A and Series A+ financing, BYD Semiconductor has completed a total financing of RMB 2.7 billion, and the overall post-investment valuation has reached RMB 10.2 billion.

As of press time, BYD shares traded in Hong Kong rose 3.24 percent to HK$312.6, setting a new record high.