(Yicai) July 29 -- Shares of Huadong Heavy Machinery jumped by the daily limit after the Chinese maker of smart port equipment said it would inject CNY143 million (USD19.7 million) into Ruixin View Technology, a graphics processing unit startup, and become its biggest single shareholder.

Huadong's stock price [SHE: 002685] gained 10 percent to reach CNY3.34 (US 50 cents) in Shenzhen today.

The maker of container handling equipment has agreed with three shareholders of Ruixin View to purchase 37.5 percent of the GPU developer's equity for CNY113 million, the Wuxi-based buyer announced yesterday. After that, it will increase the target company's capital by CNY30 million (USD4.1 million).

After the transactions, Huadong will have almost 43.2 percent of Ruixin View's equity, making it the single largest shareholder. Thereby, the shareholding of founder Xu Qinghe and an investment fund controlled by him will decrease to around 37 percent and 10.8 percent, respectively. Another individual stockholder called Liang Honglei will have his share diluted to around 9.1 percent.

Xiamen-based Ruixin View has already achieved mass production of GPU chips, compatible with mainstream desktop personal computers, laptops, and tablets made by major domestic producers of these products, achieving bulk supply, per the same source.

The core business of Ruixin View has an optimistic outlook. The latest investment is expected to introduce new profit growth points and have a positive impact on the company's medium to long-term business development, the buyer added.

Editor: Emmi Laine