(Yicai Global) July 5 -- Shares of Ruifeng Chemical rose after the Chinese maker of PVC additives said it will form a joint venture to develop a new nanomaterial that can be used in the industries of batteries, medicine, and semiconductors.

Ruifeng's stock price [SHE: 300243] closed 6.4 percent higher at CNY9.66 (USD1.30) after surging almost 12 percent intraday.

The chemicals manufacturer and Yueneng New Material Technology will join hands to establish a JV to develop technologies to mass-produce black phosphorus and phosphorene materials at a low cost, Shandong province-based Ruifeng said in a statement yesterday. Yueneng has already achieved pilot production of several hundreds of kilograms of such products.

Ruifeng will have 51 percent of the JV's equity and contribute CNY31.4 million (USD4.3 million) to it in cash. Partner Yueneng, also based in the same eastern province, will bring its exclusive intellectual property rights to the table, valued at CNY30.3 million, per the statement. 

Black phosphorus and phosphorene, two superconductive materials, have similar strengths as graphene and graphite, and they could be used in sensors and magnets. However, unlike graphite, black phosphorus is made artificially under demanding circumstances.

Editor: Emmi Laine