Shares in SF Express, mainland China’s largest express delivery company, soared by their daily 10 per cent limit in Shenzhen when they traded for the first time after taking over and renaming a rare earth trader.
The stock, renamed from Maanshan Dingtai Rare Earth & New Material Co, jumped for the fourth day this week, surging 10 per cent under its new identity to a 17-week high of 55.21 on the Shenzhen exchange.
Its Shenzhen-listed shares soared to 55.21 Yuan (US$8.04) on Friday morning, hitting the daily ceiling set by the bourse, with total market capitalisation valued at 231 billion Yuan.
“It was no surprise because the investing public was convinced of its earnings and growth potential,” said He Yan, a hedge fund manager with Shanghai Shiva Investment. “The delivery service sector is still a market where fierce competition will continue.”