Shares in China Infrastructure Investment surged 18.02 per cent to 20.3 HK cents yesterday after the company agreed to increase the investment capital of a development project in Shenyang.
Its shares had earlier jumped as much as 31.98 per cent in the afternoon following a trading resumption.
China Infrastructure announced yesterday the investment company and Pan-China Construction had agreed to increase the registered capital for their joint-venture project in Shenyang by 433 per cent to US$79.89 million.
China Infrastructure will cover US$45.42 million or 70 per cent of the extra investment cost, as it owns a 70 per cent interest in the project. The remaining 30 per cent is held by Pan-China Construction.
China Infrastructure and Pan-China Construction have formed Pan-China (Shenyang) to hold the project.
The company posted a net loss of 8.9 million yuan (HK$10.09 million) in 2007 and 14.2 million yuan last year.
China Infrastructure said the increase in investment would strengthen its financial position and provide an opportunity to finance the second-phase development of the project.