(Yicai Global) July 5 -- Time-honored jeweler Lao Feng Xiang's B-shares jumped after the Chinese firm said it intends to apply to have its US dollar-denominated mainland-listed equity to be converted into stock that trades in the more liquid Hong Kong bourse to ease its international expansion.

Lao Feng Xiang's Shanghai-listed B-shares [SHA: 900905] jumped by the daily limit of 10 percent to USD3.60 this morning, the highest since October 2017.

The retailer aims to have 206 million B-shares, or more than 39 percent of its total which includes mainland-listed A-shares, to be converted into H-shares, the Shanghai-based firm said in a statement on July 2. B-shares make up just about 20 percent of the company’s total market value.

B-shares are equities that are denominated in foreign currencies but trade on China's mainland bourses. Originally designed for overseas investors, the class of securities was only opened to domestic investors in 2001, limiting the shares' liquidity.

China International Marine Containers Group was the first firm to convert its Shenzhen-listed B-shares to Hong Kong-listed H-shares in 2012, followed by Huaxin Cement.

Stockholders of Lao Feng Xiang's B-shares could sell their holdings to a third party for USD3.40 apiece, resulting in a premium of 5 percent on the basis of the closing price on July 2, the firm added. They could also just keep the equity and wait for it to get listed in Hong Kong, it added.

The move facilitates the company’s overseas expansion, Lao Feng Xiang explained. The jewelry vendor has opened 19 stores in Hong Kong or in other offshore locations.

Lao Feng Xiang’s Shanghai-listed A-shares [SHA:600612] climbed 2 percent to CNY53.40 (USD8.30) this afternoon.

Editor: Emmi Laine, Xiao Yi