(Yicai Global) May 9 -- China International Capital Corporation’s shares surged after the country’s largest investment bank said Haier Financial Holding, its third-largest investor, will cut its stake further, cashing out as much as CNY4.5 billion (USD650 million) of CICC’s Chinese mainland-listed stock.

CICC [SHA: 601995] rose by its 10 percent daily trading limit in Shanghai today to close at CNY46.60 (USD6.73) a share. Its Hong Kong-traded stock [HKG: 3908] soared by as much as 11.1 percent, and was trading up 5.2 percent at HKD18.88 (USD2.41) each as of 3.08 p.m. local time.

The financial holding unit of Chinese home appliances giant Haier Group will sell no more than 96.5 million of CICC's Shanghai-traded shares, equal to 2 percent of CICC’s total outstanding, through block trades over the next three months, the Beijing-based bank said late on May 7.

The stake sale will likely fetch about CNY4.5 billion based on CICC's closing price in Shanghai today. So far this year, CICC’s shares have climbed 22 percent in the mainland, likely prompting Haier Financial to cash out.

Haier Financial first cut its stake in CICC by 1.9 percent via block trades last June, cashing out around CNY3.7 billion and reducing its hold to 6.3 percent. It remained CICC's third-largest investor, behind Chinese state-owned financial holding firm Central Huijin Investment and Hong Kong Securities Clearing, which own 40.1 percent and 39.4 percent respectively.

The recovery in China's stock market since the start of this year has boosted the performance of brokerages and lifted their stock prices. CICC's net profit surged 36 percent to CNY2.3 billion in the three months ended March 31 from a year earlier, its first-quarter earnings report showed on April 29. Revenue rose 22.4 percent to CNY6.2 billion. 

The shareholders of about 10 Chinese mainland listed securities firms, including Guosen Securities and Hongta Securities, have also announced plans to cut their holdings this year.

Editors: Dou Shicong, Martin Kadiev