(Yicai Global) June 2 -- Shares in Chinese digital book library iReader Technology surged by the exchange-imposed limit today after US e-commerce giant Amazon said it is pulling its e-book service Kindle out of China in June next year.

iReader’s share price [SHA:603533] soared 10 percent to close at CNY16.74 (USD2.51) apiece.

Chinese users will not be able to purchase digital books from June 30 next year, Seattle-based Kindle said. The app will be discontinued in China from June 30, 2024 and all newly bought books need to be downloaded before that. No reasons were given for the withdrawal.

Amazon will no longer supply Kindle devices to Chinese dealers from today, it said. For those e-readers bought after Jan. 1 this year, returns unrelated to quality will be accepted until Oct. 31.

Kindle closed its store on Alibaba Group Holding’s e-commerce site Taobao in October last year. In January this year, there were no Kindle devices available for sale on any of China’s major e-retailers, sparking online speculation that the 15-year-old firm is preparing to exit the country.

Amazon is committed to serving its Chinese customers, and people can buy Kindle devices through third-party online retailers and brick-and-mortar outlets, Amazon said on Jan. 4. Amazon’s high-quality customer and warranty service will not change, it added.

But multiple sources at Amazon China said that the Kindle hardware team had been laid off in November last year and that the firm had cut investment in Kindle's research and development department.

Editor: Kim Taylor