China CNR Corp. shares surged by as
much as 9.9 percent in Shanghai trading after the official
Xinhua News Agency reported the trainmaker won a contract to
provide trains for the greater Boston subway system.
The stock climbed 5.1 percent to 6.38 yuan as of the city’s
11:30 a.m. trading break, while CNR’s Hong Kong-listed shares
rose as much as 4 percent to an intraday record. The benchmark
Shanghai Composite Index fell 0.9 percent.
The company’s shares jumped after Xinhua reported on its
microblog that the Beijing-based company won the bid for the
contract.
China CNR beat competitors including Bombardier Inc. (BBD/B),
Hyundai Rotem Co., Kawasaki Rail Car and CSR Qingdao Sifang with
a $567 million bid to supply cars for the greater Boston area,
according to a procurement proposal posted on the Massachusetts
Department of Transportation’s website.
China CNR was recommended to receive the contract, which is
for 284 subway cars with an option for a further 58, according
to the proposal.
To contact the reporter on this story:
Li Liu in Beijing at
lliu255@bloomberg.net
To contact the editors responsible for this story:
Gregory Turk at
gturk2@bloomberg.net
Darren Boey