BEIJING Feb 14 Shares of Tangshan Port Group Co
Ltd soared 7 percent on Tuesday, to post their
biggest daily percentage gain in nine months, as investors bet
the small port would benefit from a major clampdown on coal
transportation at its larger rival.
Shares in the Hebei-based company trading on Shanghai stock
exchange jumped to 4.6 yuan ($0.67), their highest since Nov.
15, on Tuesday before ending the session at 4.52 yuan.
Trading volume was also higher than usual with 121 million
shares, the highest in a year. The stock posted its biggest
daily percentage gain since May 13 last year.
The buying spree came after Reuters reported on Monday that
China's Ministry of Environment is considering stopping
Tangshan's neighbouring rival Tianjin Port Co Ltd,
China's second largest by cargo volume, from handling coal by
Tianjiin shares closed 2.09 percent higher at 10.73 yuan per
tonne. At least 19 million shares were traded.
It's not yet known when the government will decide whether
to implement the plan, but the draft policy document seen by
Reuters showed a radical proposal to divert coal shipments to
Tangshan, 130 km (80 miles) to the north.
"There may be an increase of coal loading and unloading
activity at Tangshan port," said Fan Ming, a Shenzhen-based
analyst at Guotai Junan.
Tianjin, a key hub for coal, handles about 100 million
tonnes of seaborne coal and domestic coal every year, which
flows south from Inner Mongolia.
Tianjin is larger by revenue and cargo volume than Tangshan,
although Tangshan is larger by market capitalisation, with 19.2
billion yuan compared with Tianjin's 17.96 billion yuan.
($1 = 6.8640 Chinese yuan)
(Reporting by Josephine Mason and Meng Meng; additional
reporting by Brenda Goh; Editing by Sherry Jacob-Phillips)