(Yicai Global) Dec. 9 -- Fujian Yongfu Power Engineering’s share price jumped up to 20 percent this morning after it announced China’s power battery giant Contemporary Amperex Technology’s plan to pay CNY212 million (USD32.3 million) to take an 8 percent stake in it.

Yongfu stock [SHE:300712] traded 11.35 percent up at CNY20.60 (USD3.14) in midafternoon, but CATL [SHE:300750] was down 1.13 percent at CNY263.02, after rising up to 2 percent in the morning. Yongfu trades on Shenzhen's ChiNext Market, which, like Shanghai’s new Nasdaq-style Star Market, adopted a daily 20 percent up/down limit since early this year, as against the 10 percent of other boards.

CATL plans to buy 14.57 million Yongfu shares from its controlling shareholder Lin Yiwen for CNY14.52 per share, which is an about 21 percent discount off its stock’s closing price yesterday.

The investment represents CATL’s strategic deployment in the energy storage business to augment its core power battery business, Yongfu said in its statement. CATL has yet to announce the transaction.

Yongfu, based like CATL in southeastern China’s Fujian province, is a power station designer and project contractor. It has lately ventured into new energy power projects such as wind farms and development of photovoltaic power stations and smart grid management technology, public information shows. CATL is the world's largest power battery maker.

Editor: Ben Armour, Xiao Yi