HK Stock Market Move | Montage Technology (06809) rose more than 7%. Its holding subsidiary, Hengqin Company, plans to increase capital and expand shares, introducing a new investor, Hainan Yunfeng.

Montage Technology (06809) rose more than 7%, as of the time of publication, up 7.15%, at HK$407.4, with a turnover of HK$6.13 billion. On the news front, on June 1st, Montage Technology announced that to meet the operational development needs of its holding subsidiary, Hengqin Company, Hengqin Company plans to increase capital and introduce new investors. Hengqin Company plans to increase its registered capital from RMB 143.5 million to RMB 165.7 million, with an additional registered capital of RMB 22.2 million, and a total capital injection of RMB 499.5 million in this round. As a holding subsidiary of the company, Hengqin Company is mainly engaged in the research and industrialization of new products such as CXL, MXC, PCIe Switch chips, which are currently in the research and development stage and require financing support. Specifically, the new investor, Hainan Yunfeng Fund Center (Limited Partnership) (hereinafter referred to as "Hainan Yunfeng"), plans to invest RMB 51.75 million, subscribing to the new registered capital of Hengqin Company of RMB 2.3 million; the new investor, YF Hestia II Limited (hereinafter referred to as "YF Hestia II", together with Hainan Yunfeng referred to as "Yunfeng"), plans to invest the equivalent of USD 198 million in RMB, subscribing to the new registered capital of Hengqin Company of RMB 8.8 million; the company plans to invest approximately RMB 250 million, subscribing to the new registered capital of Hengqin Company of RMB 11 million.