China CNR Corp led gains in shares of Chinese companies that build and supply equipment for railways on speculation they will win contracts for the construction of Thailand’s high-speed train system.
China CNR, which produces passenger cars and wagons, rose by the 10% daily limit in Shanghai to 4.59 yuan, the biggest one-day gain since February 2013. CSR Corp, which makes locomotives and cars, and Taiyuan Heavy Industry Co, a maker of train axles, also surged by the daily limit. China Railway Construction Corp rose 7.4% and China Railway Group Ltd climbed 8.1% at the mid-day trading break. China's benchmark Shanghai Composite Index (SHCOMP) rose 0.5%.
The shares gained after Prime Minister Yingluck Shinawatra told reporters on Oct 11 after meeting with Chinese Premier Li Keqiang in Bangkok that Chinese train companies had expressed interest in developing the southeastern Asian country's high-speed train system. China and Thailand signed six initial agreements during Li's visit last week covering cooperation in technology, energy, environment and culture.
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