GD Midea Holding hits limit after trading resumes

Electrical appliance manufacturer GD Midea Holding reached its trading limit immediately after it resumed trading on Monday.

The Shenzhen-listed company halted trading at 10.1 yuan ($1.63) a share, an increase of 10.02 percent.

In a statement filed to the Shenzhen Stock Exchange, the firm said it will issue new shares in the name of parent company Midea Group at a price of 44.56 yuan. Holders of GD Midea Holding shares can either cash them in or take up shares in Midea Group.

GD Midea Holding went public in 1993 and suspended trading in August last year on rumors of the overall listing of its parent.

With headquarters in Shunde, Guangdong province, Midea Group employs about 150,000 people and reported revenue of more than $22 billion in 2011.