Gaozheng Minbao saw its intraday up-limit broken on August 7 before closing back at the up-limit, marking its sixth up-limit in eight trading sessions and taking its total market value to 15 billion yuan. The stock has surged more than 105 percent over nine trading days since July 27, with the market frenzy mainly driven by a change in its controlling shareholder. The company announced on the evening of July 28 that its actual controller, the State-owned Assets Supervision and Administration Commission of the Tibet Autonomous Region government, plans to transfer the 34 percent stake held by the controlling shareholder Tibet Construction Group to Tibet Geology and Mining Group free of charge. After the transfer, the controlling shareholder will change to the Geology and Mining Group, and Tibet Construction Group's stake will drop from 57.38 percent to 23.38 percent. The company also plans to change its name to Tibet Geology and Mining Development Company Limited, and adjust its main business into two segments: mining investment and development, and civil explosives production, sales and services.
Tibet GaoZheng Explosive Co LtdControlling shareholder change to Geology and Mining Group and business adjustment to mining investment and civil explosives drive stock surge.
