IN a market that has seen a tremendous surge over the past month, Paragon Holdings' spectacular jump yesterday still caught many stock watchers by surprise. Paragon's stock, which had been suspended for three days before resuming trading yesterday, leapt 25.8 cents or 181.6 per cent to 40 cents on turnover of $257 million. It was the second most heavily traded stock, with 577.6 million shares changing hands. This represented 25.9 per cent of Paragon's issued share capital. Those who bought Paragon shares at 4.9 cents a month ago have seen their investment jump by 716.3 per cent. Yesterday's surge followed an announcement on Thursday that Sun World had agreed to buy 960 million shares in Paragon for $144 million or 15 cents a share. This represented 43.17 per cent of Paragon's total existing share capital and 35.97 per cent of the enlarged share capital. Upon completion, Sun World, a wholly owned subsidiary of China National Petroleum created for the deal, plans to make a conditional cash offer for the entire issued share capital of Paragon for 15 cents a share. Sun World said Paragon would focus on its existing businesses of oil exploration and production and continue its other businesses. Paragon will continue to be listed on the stock exchange with the general public owning less than 25 per cent of the its issued share capital. Seapower Securities research director Samuel Lau Kwok-leung said Paragon's heavy turnover and volume reflected investors' keen interest in backdoor listings by China enterprises. He said the price swings of Paragon and Conic Investment, which fell $2.225 or 31.7 per cent to $4.775 yesterday, might prompt a stock exchange investigation.