(Yicai Global) July25 -- The US commerce department has ruled that Daye Garden Machinery is not subject to circumvention measures after it conducted an investigation into the Chinese manufacturer of garden power tools.

The ruling will enable Daye Garden to expand further in the US market for gasoline lawn mowers, the Ningbo-based firm said in a statement after the close of trading today. The company received notice from its US anti-circumvention legal team about the termination of the case against it yesterday.

The commerce department began investigating Daye Garden last October, following a request from MTD Products. The American firm alleged that Daye Garden was shipping lawn mowers without engines to the United States and assembling them there to evade anti-dumping and anti-subsidy duties.

In May, the company reported that the US market for garden machinery is vital for the industry, making up almost half of global demand. Daye Garden also has a significant share of the US market, though it did not disclose any specific figures.

Shares of Daye Garden [SHE: 300879] jumped 4.8 percent to close at CNY18.11 (USD2.54) apiece today. The broader Shenzhen market jumped 2.5 percent.

Editor: Peter Thomas