China Huarong hits 8-month peak on deal to buy CITIC stake

China CITIC Financial Asset Management

16/11/2023 02:18

** Shares of China Huarong Asset Management  2799.HK  jump
as much as 30.1% to HK$0.475, highest since March 7
    ** Stock set for biggest one-day pct rise since debut if
gains hold; biggest pct gainer in Hang Seng Composite Index
 .HSCI  and Hang Seng Composite Index tracking financials stocks
 .HSCIF 
    ** State-owned co on Wednesday said it has agreed to buy a
5.01% stake in CITIC  267.HK  for HK$13.63 bln ($1.75 bln) in a
deal it says will improve its finances and optimise asset
quality
    ** Huarong is buying the stake from a unit of Chinese
finance ministry-backed CITIC Group at HK$9.35 per share,
representing 29.3% premium to CITIC's Wednesday close
    ** CITIC stock climbs 1.8% to HK$7.36, highest since Sept.
25
    ** Hang Seng Composite Index eases 1.2%, Hang Seng Index
 .HSI  falls 1.4%
    ** Huarong stock up 6.1% YTD

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))