(Yicai Global) June 26 -- Shares in the health unit of Evergrande Group, China's largest property developer, surged 66 percent after it revealed plans to become the top shareholder in US-based electric car startup Faraday Future.

Investors welcomed Evergrande Health Industry Group's potential shift in business focus. Its market capitalization jumped HKD26.4 billion (USD3.36 billion) to HKD66.3 billion today, with the increase more than outstripping the cost of its outlay on Faraday Future. The stock [HKG:0708] ended trading at HKD7.67 (USD0.97) a share, after earlier climbing as much as 80 percent.

The Hong Kong-based company said yesterday that it has reached an agreement to pay HKD6.7 billion for a 45 percent stake in Faraday Future.

The deal marks cash-rich Evergrande Group's official entry into the competitive new energy vehicle sector, while also giving Faraday Future's embattled founder Jia Yueting some much-needed breathing room to revive his dying commercial empire. China's government has branded Jia as a 'laolai,' meaning someone who intentionally avoids paying debts, following repeated cash crises at his Chinese businesses.

Founded in 2014, Faraday Future aims to rival Tesla in the high-end NEV sector, though its Nevada operations were shut last year when liquidity problems at Jia's China-based LeEco tech empire spilled over. The company reported a USD340 million pre-tax net loss last year, compared with USD569 million in 2016.

The Hong Kong Stock Exchange's benchmark index, the Hang Seng, fell 0.28 percent to 28,881.4 points today, representing the lowest close this year amid heavy selling pressure on all Chinese markets due to the escalated US-China trade dispute.

Editor: William Clegg