(Yicai Global) Dec. 17 -- Shares of Fullsun International Holdings Group, which tanked in October, surged 36 percent today. An insider told Yicai Global that the developer is in talks to sell a stake in itself to Shimao Property Holdings.

Changsha, Hunan province-based Fullsun's stock price [HKG:0627] closed at HKD0.18 (2 US cents), while Shimao Property [HKG:0813] gained 1.5 percent to end the day at HKD29.90.

Thanks to the fast expansion of its land resources, Shimao Property has become one of China's top developers. It acquired a large amount of land this year, while its competitors remained cautious, and the firm is now interested in Fullsun's land assets. The insider did not disclose the size of the stake under discussion.

Units of Shimao Property bought a 51 percent stake in the Hangzhou Jiangcun Project from Fujian Sannong Group for CNY378 million (USD54 million), and a 51 percent share of the Nanchang Yinmeng Lake Project for CNY1.8 billion (USD257 million) in March. It then spent over CNY7.7 billion to acquire Fujian Sannong Group's projects in Guangzhou and Hangzhou in April and May, respectively.

The Shanghai-based company also bought equity in five real estate projects from Guangzhou-based property developer Yuetai Group for a total consideration of CNY6.4 billion.