Understanding the Market | CHINA HANKING rose over 5% in the late trading session, its subsidiary acquiring the remaining shares of Cygnet Gold, and Hanking Gold is about to be listed in Hong Kong

According to the Zhitong Finance APP, CHINA HANKING (03788) rose more than 5% in late trading, up 5% as of the time of writing, priced at HKD 4.2, with a transaction volume of HKD 10.9881 million.

In terms of news, CHINA HANKING recently announced that its subsidiary Watkins Gold has acquired a total of 6.63% equity in Cygnet Gold, which owns and operates a gold mine project with approximately 2.06 million ounces of gold resources, for a total consideration of AUD 16.6 million. Upon completion, Cygnet Gold will become a wholly-owned subsidiary of Hanking Gold. Meanwhile, Executive Director Dr. Qiu Yumin and minority shareholders of Cygnet Gold plan to subscribe for 8.7 million and 12.2 million new shares of Hanking Gold, respectively, at a price of HKD 2.62 per share. After completion, the company's shareholding in Hanking Gold will be diluted from 91.19% to 90.44%.

It is worth noting that CHINA HANKING previously announced that prior to the initial public offering of its non-wholly-owned subsidiary Hanking Gold, it issued a total of 436 million shares to six subscribers, including the company itself, at a price of HKD 2.62 per share. The total subscription amount is HKD 1.14 billion, intended to support the development of the Australian gold mine project and to repay the company's internal loans of approximately AUD 86 million. It is reported that CHINA HANKING announced in July this year its plan to spin off its subsidiary "Hanking Gold" for independent listing on the main board of the Hong Kong Stock Exchange through a backdoor listing