(Updates to add analyst comment in fourth paragraph.)
Nov. 7 (Bloomberg) -- China Qinfa Group Ltd., a Chinese coal company, jumped the most in more than two years in Hong Kong trading after agreeing to take control of a company with three coal mines.
China Qinfa climbed as much as 31 percent, the most since July 3, 2009, after saying in a Nov. 4 statement it will pay 2.9 billion yuan ($457 million) to increase its stake in Shanxi Huameiao Energy Group Co.
The purchase will boost its share in the company to 80 percent from 32 percent. Huameiao Energy’s annual capacity may reach at least 9.3 million metric tonnes of coal when all three of its mines are in operation, according to the statement.
“China Qinfa’s coal production may rise significantly next year as it unleashes the productivity from these mines,” Yang Tao, analyst with KGI Asia Ltd., said today by phone.
The stock, which resumed trading today after being suspended on Oct. 27, was 21 percent higher at HK$1.82 as of the midday break.The benchmark Hang Seng Index dropped 0.2 percent.
--Editors: Andrew Hobbs, Keith Gosman
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