HK Stock Market Move | CHINA HANKING (03788) surged over 14% in the morning session, with revenue in the first half of the year increasing by over 10%. The company had previously announced the spin-off of its gold business for a Hong Kong stock listing.

China Hanking (03788) surged more than 14% in the morning session, as of the time of writing, it was up 14.41% at HK$2.7, with a trading volume of HK$111.39 million. On the news front, China Hanking released its interim financial results, with the group generating revenue of RMB 1.405 billion, an increase of 10.77% year-on-year; the attributable profit to owners of the company was RMB 104 million, a decrease of 2.93% year-on-year. In addition, the company recently updated the final feasibility study for its Mt Bundy gold mine project and the pre-feasibility study for its Cygnet gold mine project, increasing the total recoverable resources from its 5.07 million ounces gold resource to 3.1 million ounces of gold. The planned annual gold production for these two gold mine projects is expected to exceed 200,000 ounces. It is worth noting that China Hanking announced in July this year that it plans to spin off its subsidiary "Hanking Gold" for independent listing on the main board of the Hong Kong Stock Exchange through an introduction-to-listing method. First Shanghai stated that after the spin-off, the company will have a dual listing structure, existing shareholders will be able to hold shares of both China Hanking (iron ore business) and Hanking Gold (gold business) without additional funding. This move aims to create an independent capital platform for the gold business and drive the valuation recovery of the gold business. Additionally, the company plans to introduce long-term strategic investors before the spin-off and use the financing funds for the construction of the Cygnet gold mine project in Western Australia.