Hafei Aviation Industry Co, the listed unit of Harbin Aircraft Industry (Group) Co, rose the most in a month in Shanghai trading yesterday after its parent announced plans to form a parts-making venture with Airbus SAS.
Shares of the company rose to the 10-percent daily limit to 16.59 yuan (US$2.43). Harbin Aircraft and Airbus will set up a venture to make composite parts for A320s and A350s, Hafei said in a stock exchange statement.
Airbus is setting up ventures in China, including an A320 assembly line in Tianjin, as it competes with Boeing Co for orders in the world's second-largest aviation market.
Harbin Aircraft will own 80 percent of the parts venture, which will be set up next year, Hafei said. It will be based in Harbin, capital of northeast China's Heilongjiang Province.
