(Bloomberg) -- Chery Holdings Co. is considering a Hong Kong initial public offering for its automotive unit that could value it at about 50 billion yuan ($7.1 billion), according to people familiar with the matter.

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The group is seeking to hire banks for the potential IPO of Chery Automobile Co., the people said, asking not to be identified as the information isn’t public.

Deliberations are ongoing and details such as the size of the IPO may change, the people said.

A representative for Chery didn’t have an immediate comment on the matter.

Chery Auto is one of China’s biggest car exporters and one of only a few not listed. It is a key asset for Chery Group, which is also involved in financial services and real estate.

Chery had previously considered an IPO in mainland China for the carmaker, Bloomberg News reported last year.

After years of slumping volumes, Hong Kong’s IPO market appears to be on the cusp of a tentative recovery, aided by Beijing’s stimulus pledges last month that sent Chinese shares soaring. IPOs in the financial hub have raised $7.2 billion so far this year, data compiled by Bloomberg show.

Founded in 1997, Chery Auto sells cars under brands Chery, Tiggo and Arrizo in China and abroad, according to its website. It has been looking to expand its production facilities globally, including in Europe. In Vietnam, it aims to start mass production in the first phase of an $800 million plant by the end of 2025.

Chery Auto said last year it planned to set up subsidiaries in Europe to sell directly to customers in the UK, Germany and France. It has since pushed back a goal to bring electric-vehicle production to Europe by a year after the European Union’s imposition of tariffs on EV imports from China.

--With assistance from Linda Lew.

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