Railway stocks jump more than 40% after handshake with Chinese giant

HRT shares up 43% in 7 days. Screenshot

At the end of the trading session on June 26, HRT shares of Hanoi Railway Transport JSC continued to increase by 15% to reach the ceiling price of VND11,100/share. This was the third consecutive ceiling price increase of this stock.

HRT's market price has increased 43% in just the past week, bringing the stock to its highest level in the past two years.

Similarly, SRT shares of Saigon Railway Corporation also hit the ceiling price in the session of June 26, reaching VND9,800/share. Over the past week, SRT's market price increased by 37.13%. This is also the highest price of this stock in the past two years.

It is known that the two above companies are both subsidiaries of Vietnam Railways Corporation (VNR). Of which, VNR currently owns 91% of HRT's capital and 78% of SRT's capital.

Railway stocks surged amid Chinese railway companies’ moves to join hands with Vietnam to exploit the sector more effectively. Accordingly, Prime Minister Pham Minh Chinh met and worked with the Chairman of the Board of Directors of Dalian Railway Locomotive and Carriage Company Limited (CRRC).

CRRC is known as a "giant" in the field of urban rail vehicles, with many world-leading technologies in the railway field.

At the meeting, the Prime Minister hoped that Vietnam and China could further promote cooperation and connect the two economies, including the railway sector. This is also a field that Vietnam has important and urgent needs in the current period.

On the CRRC side, the company's leaders said they are ready to participate in the construction of railway lines connecting the two countries, as well as urban railway projects in Hanoi and Ho Chi Minh City, as well as providing comprehensive, high-tech solutions, promoting localization, sharing experiences, and supporting human resource training.

From there, it will help Vietnam develop the railway industry, as well as develop areas such as new energy transportation, contributing to promoting relations between the two countries.

Source: https://laodong.vn/kinh-doanh/co-phieu-duong-sat-bat-tang-hon-40-sau-cai-bat-tay-voi-ong-lon-trung-quoc-1357949.ldo