China hydropower firm surges after state holding

BEIJING - Share prices for listed hydropower company Guangdong Meiyan Jixiang Hydropower Co, Ltd soared by 10 percent on Tuesday, after the national margin lender became the company's top shareholder.

The company said in a statement that China Securities Finance Corporation (CSF), the national margin trading service provider for securities brokers, became its largest shareholder at the end of last month.

CSF held 9.83 million of the company's shares, accounting for only 0.52 percent of its total and worth some 42 million yuan ($6.9 million) based on the current price.

Meiyan Jixiang's shares surged by the daily limit of 10 percent soon after Tuesday's opening, with a whopping number of bids to buy, a sign of investors' expectation for further gains.

The firm was established in 1993 and listed in Shanghai in 1994. It now owns 10 hydropower stations in Guangdong province and the Guangxi Zhuang autonomous region.

The company suffered losses of 54.53 million yuan last year and 30.77 million yuan in the first quarter of 2015 due to drops in revenue.

The company does not have a controlling shareholder and its largest shareholder changed six times this year.