Shares in Chinese cement manufacturer BBMG are limit-up in Shanghai and have climbed as much as 20.7 per cent in Hong Kong as investors flock to companies pegged as likely to benefit from a new special development zone announced by President Xi Jinping.
Hong Kong-listed shares in the company – which describes itself as the largest cement manufacturer and supplier in the region covering Beijing, Tianjin and Hebei province – are currently up 15.2 per cent at HK$5.01. Shanghai-listed shares are limit-up with a rise of 10 per cent to Rmb5.13.
The new 100 square kilometre area, christened the Xiongan New Area, is 100km southwest of Beijing and is designed to advance the development of the Beijing-Tianjin-Hebei region, according to state news agency Xinhua. Announced on Saturday by Mr Xi, it will be expanded to become a 2,000 square kilometre area in the long-term.
Mr Xi’s plans follow on from plans by his predecessors Deng Xiaoping and Jiang Zemin who established the Shenzhen Special Economic Zone and the Shanghai Pudong New Area respectively.
Shares in Hong Kong closed Monday up 34.7 per cent ahead of Tuesday’s Tomb Sweeping day market holiday. Mainland markets had been closed this week until Wednesday morning, but the 10 per cent limit on share price movements in Shanghai and Shenzhen could delay those shares’ catching up with the rise by their Hong Kong counterparts.