(Yicai Global) May 28 -- Shares in China TransInfo Technology have surged by the 10 percent daily limit after an Alibaba subsidiary invested CNY3.6 billion (USD522 million) in the smart transport and security firm.

The Beijing-based company's share price [SHE:002373] opened at CNY20.2 (USD2.92) this morning and have remained there all day after a statement yesterday said Alibaba China Network Technology would take a 15 percent stake to become TransInfo's second-biggest shareholder. The investor snapped up the shares at CNY16.1 apiece, a 12 percent discount on yesterday's close.

On top of the investment, TransInfo penned a framework agreement with Alibaba Cloud Computing to cooperate in intelligent transport and edge computing, the statement added. They will work together in research, marketing and project management.

Founded in 2000, TransInfo's main product is electronic tollbooths. It earned CNY7.3 billion in revenue last year, up more than a third from 2017, while net profit attributable to shareholders leapt 63.8 percent to CNY763 million (USD110 million). Its income from the transport and smart security sectors were fairly evenly split.

Editor: James Boynton