Gree Electric steps on reform pedal

Parent's decision to reduce stake in firm to help offset tough external market conditions

Shares of China's largest air conditioner maker Gree Electric Appliances Inc closed at its highest level in three weeks on Tuesday after the company announced its State-owned parent company Gree Group sold a 15 percent stake in the subsidiary, a move that will boost the company's market competitiveness, improve operating efficiency and diversify its product portfolio.

The shares of Gree Electric surged 5.35 percent to close at 60.8 yuan ($8.6), having risen during the session by 6.03 percent to trade at the day's peak of 61.19 yuan. It was the best close for the shares since Nov 11, 2019 when the stock ended at 61.17 yuan.