Foshan Electrical and Lighting Co., a Chinese electro-optical product maker, rose the most in five weeks after saying it will set up a joint venture to make lithium batteries with Hefei Guoxuan High-Tech Power Energy Co.
The shares jumped 3.1 percent, the biggest increase since March 7, to 15.35 yuan, and traded at 15.29 yuan as of 11:55 a.m. in Shenzhen.
The two companies will invest as much as 261 million yuan ($40 million) in the venture named Guangdong Fozhao Guoxuan Power Energy Co, Foshan Electrical said today in a filing to the Shenzhen stock exchange. Each company will hold an equal stake.
Foshan Electrical has an 18 percent stake in Hefei Guoxuan. The Guangdong-based company terminated its agreement, signed last year with Taiwan-based Pihsiang Machinery Manufacturing Co., to form a venture for lithium batteries used by electric cars.