(Yicai Global) March 2 -- Changhong Jiahua Holdings's shares surged to an almost three-year high after the information technology unit of TV maker Changhong Electric said it could become Huawei Technologies's domestic distributor.

Changhong Jiahua's stock price [HK:8016] rose more than 38 percent to HKD1.12 (US 14 cents) this afternoon. That is the highest since April 2017.

Changhong Jiahua has inked a preliminary agreement with Huawei to sell the Shenzhen-based telecoms firm's equipment in the mainland, the Hong Kong-based company said in a statement today. Huawei is looking to finalize the deal by the end of June.

Editor: Emmi Laine