(Yicai Global) Aug. 17 -- Ningbo Bird’s shares jumped despite the Chinese mobile phone maker denying a rumor that it will be the vehicle for a backdoor listing by Honor, the budget handset business Huawei Technologies sold last year.

Ningbo Bird [SHA:600130] ended 3.1 percent higher today at CNY4.28 (66 US cents), after earlier climbing as much as the 10 percent. The stock also surged by the 10 percent exchange-imposed limit yesterday.

The company has not collaborated with Honor in any form and its main business has never changed, Zhejiang province-based Ningbo Bird said in a statement today. Founded in 1992, it develops, makes and sells mobile communications devices including phones, palmtop computers and system devices.

Honor will be more open and transparent in the future about more diversified channels for fundraising, and will not exclude the possibility of going public at an appropriate time, Honor Chief Executive Zhao Ming said in an interview on Aug. 12.

The day after the interview, investors noted that on the Shanghai Stock Exchange’s interactive platform for investors Honor was said to pursue a backdoor listing through Ningbo Bird. This led to the rumor spreading.

In a backdoor listing, or reverse merger as they are also known, a privately held company buys a publicly held one to side step the lengthier regulatory process involved in an initial public offering.

Huawei announced last November, against the backdrop of US sanctions, that it was selling its Honor business to a new firm set up by Shenzhen’s State-owned Assets Supervision and Administration Commission and more than 30 agents and distributors to ensure its survival.

Editor: Futura Costaglione