(Yicai Global) May 14 -- Shares in Shenzhen Capstone Industrial hit the 10 percent up limit today after one of its subsidiaries secured two industrial hemp planting permits covering nearly 467 hectares of land.

Capstone’s stock [SHE:000038] closed at CNY11.01 (USD1.55) after spending most of the day at the maximum.

Subsidiary Yunnan Huayun Jinxin Biotechnolgoy has received approval from the Binchuan and Eryuan country governments to plant industrial hemp on plots spanning around 333 hectares and 133 hectares for one year, Capstone said yesterday. The unit’s permit for a 33 hectare area in Eryuan recently expired, it added.

Industrial hemp was all the rage in China in the first half of last year, with many listed firms seeing a surge in their share price after unveiling plans to enter the sector. Capstone was among them, though its stock began to cool in September as the trend died off.

Yunnan is hot spot for hemp in China, being one of few provinces where planting is legal. The region is also home to an abundance of resources useful for nurturing hemp.

Editor: James Boynton