Shares of Hu An Cable (HACH.SI), a Singapore-listed Chinese wire and cable manufacturer, rose as much as 9.3% on Monday after it said it stands to benefit from China’s multi-billion dollar rural power grid plan.
At 0417 GMT, Hu An shares were up 6.7% at $0.40 on a volume of 13.5 million shares.
At 0417 GMT, Hu An shares were up 6.7% at $0.40 on a volume of 13.5 million shares.
“Investors are positive on the company because Hu An seems to have close ties with the government and there have been positive reports on it,” said a local trader.
Hu An said the Chinese government plans to invest 200 billion yuan in its power grids in the rural region between 2010 and 2012, and the firm can win more orders due to its close ties with the state grid and state-owned electric power companies.
It is capable of providing the entire range of power cables used in the construction of rural power grids and is among 20 qualified suppliers to the state grid and state-owned electric power companies, Hu An said in a statement.
It added that it faces around five competitors in securing the contracts to upgrade the rural power grids in China.
The firm told Reuters in October last year that it aims to be among the top five companies in China’s market for high-end power cables in the next five years by rapidly increasing its production capacity.
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