(Yicai Global) June 28 -- Shares of Sinohytec jumped after the Chinese fuel cell technology developer said it has gained CNY200 million (USD31 million) in funding from investors, including foreign financial giants UBS Group and JPMorgan Chase, to build a testing center.

Sinohytec's stock price [SHA: 688339] rose as much as 16.6 percent to CNY289.97 (USD44.90) intraday, still nearly 20 percent down from its all-time high of CNY348 logged last February.

Chinese electric vehicle maker BAIC BJEV and New York-based Morgan Stanley will also join the private placement, the Beijing-based share issuer said on June 25. 

With the funding, Sinohytec will build a fuel cell engine testing facility in northern China's Zhangjiakou, one of the venues for the Beijing 2022 Winter Olympics. The center will be ready in 2023 while all the equipment should be installed in 2022.

The three foreign investment banks have been fuelling China's push into the emerging low-emission transport sector. Last month, UBS, JPMorgan Chase, and Morgan Stanley participated in Shandong province-based diesel engine giant Weichai Power's private placement of CNY13 billion (USD2 billion) to support fuel cell product development. Meanwhile, UBS became Weichai's eighth-largest shareholder.

The four investors will collectively hold a 1.2 percent stake in Sinohytec after the deal is closed, the firm added. Zurich-headquartered UBS will invest CNY85 million (USD13.2 million), New York-based JPMorgan Chase CNY30 million, and Morgan Stanley CNY15 million. The Beijing-headquartered auto firm will spend CNY70 million.

Sinohytec has been developing fuel cell engines since 2012. Last April, the firm started making high-power engines of 120 kilowatts and 80 kW but the work requires improved product testing capabilities, according to the same statement.

Editor: Emmi Laine, Xiao Yi