Yunnan Copper Industry Co. (000878) surged by as much as the daily limit in Shenzhen as trading resumed from a three-month halt after it shelved a planned private placement and amid a rebound in metal prices.
Shares rose as much as 10 percent, or 0.76 yuan, to 8.37 yuan. The stock gained 5 percent as at the 11:30 a.m. local time break, the most since September, compared with a 0.8 percent decline in the benchmark Shanghai Composite Index.
Yunnan Copper, suspended on April 17, said yesterday it will halt the placement which was part of a plan to buy assets from its parent, Yunnan Copper Group Co. The company won’t plan for any important restructuring or share offering within three months of trading resuming, it said. Copper prices in London have gained 6.5 percent since the share suspension.
“There’s sufficient liquidity in the market and capital is moving into metal stocks as commodity prices rebound,” said Wu Kan, a money manager at Shanghai-based Dragon Life Insurance Co. “Yunnan Copper will likely restart the private placement plan at some point in the future because listing the group’s assets is an inevitable trend.”
“Conditions are not ripe yet” for the private placement, Yunnan Copper said yesterday, citing factors from macro economy and policies, without elaborating.
Yunnan Copper Group, the parent, is controlled by state-owned Aluminum Corp. of China, the nation’s biggest producer of the lightweight metal.
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