Tom Group Surges Most in 14 Years on Venture With China Post
The company climbed as much as 46 percent, headed for the biggest gain since March 2000, to HK$2.03. The stock traded at HK$1.84 at the midday break. The Hang Seng Index rose 0.8 percent.
Tom Group signed an agreement with state-owned enterprise China Post Group to form a new joint venture operating an e-commerce business in China, it said yesterday in a statement. Online retailing in China is projected to more than triple to $395 billion in 2015 from 2011, according to a McKinsey & Co. report in March.
“State-owned China Post has a competitive edge, as it has established an efficient and comprehensive network in Chinese cities early on,” said Alex Wang, a Beijing-based analyst at Internet consulting group IResearch.
Tom Group will hold 49 percent of the venture and China Post the rest. Tom Group will provide as much as 155 million yuan ($26 million) of marketing funds to the venture.
To contact the reporter on this story: Rachel Butt in Hong Kong at firstname.lastname@example.org
To contact the editor responsible for this story: Hwee Ann Tan at email@example.com