Henderson Land Development said it had no plans to privatise subsidiary Henderson Investment after the share price of its infrastructure unit jumped 31.15 per cent to 80 HK cents yesterday. 'The surge in the stock is based on speculative buying by stock investors,' said Colin Lam Ko-yin, vice-chairman of both Henderson Land and Henderson Investment. Henderson Land does not have plans to privatise Henderson Investment or inject assets in the vehicle, said Lam. Shares of Henderson Investment surged 59 per cent to 97 HK cents in the morning yesterday on the back of market speculation that the company could be privatised by its parent or buy assets from the parent. Later in the day, they eased back but still closed up 31.15 per cent at 80 HK cents. Shares of Henderson Land rose 0.18 per cent to close at HK$54.85. Brokers said the chance of taking Henderson Investment private was very slim since it had sold most of the assets. Henderson Investment received approval to sell its stake in Hong Kong and China Gas in 2007, leaving it with two major assets. The company owned interests in Hangzhou Qianjiang Third Bridge and a highway in Maanshan, Anhui province, in June last year, according to its annual report. There are also rumours that Henderson Land will inject mainland property assets into the infrastructure unit. Henderson Investment posted a net profit of HK$102 million for the 12 months to June, down 100 per cent year on year. Meanwhile, chairman Lee Shau-kee said home prices in Hong Kong have surged too fast in the past few months. But if the government resumes the construction of government-subsidised housing, that could deal a blow to the economy, he added.