Yili shares surge on Shengmu purchase

Company plans to expand in high-end market to tap into middle-class demand

Dairy giant Inner Mongolia Yili Industrial Group Co Ltd saw its shares surge on Monday, the first day it resumed trading after its announcement that it will acquire China Shengmu Organic Milk Ltd and plans to expand in the high-end milk products market.

Yili shares surged 7.32 percent and closed at 17.29 yuan ($2.55) in Shanghai trading on Monday, the first day it resumed trading.