China Qinfa climbed as much as 31 percent, the most since July 3, 2009, after saying in a Nov. 4 statement it will pay 2.9 billion yuan ($457 million) to increase its stake in Shanxi Huameiao Energy Group Co.
The purchase will boost its share in the company to 80 percent from 32 percent. Huameiao Energy’s annual capacity may reach at least 9.3 million metric tonnes of coal when all three of its mines are in operation, according to the statement.
“China Qinfa’s coal production may rise significantly next year as it unleashes the productivity from these mines,” Yang Tao, analyst with KGI Asia Ltd., said today by phone.
The stock, which resumed trading today after being suspended on Oct. 27, was 21 percent higher at HK$1.82 as of the midday break.The benchmark Hang Seng Index dropped 0.2 percent.
To contact the reporter on this story: Billy Chan in Hong Kong at firstname.lastname@example.org
To contact the editor responsible for this story: Marco Lui at email@example.com