(Yicai Global) Dec. 13 -- Chinese appliance maker Haier Smart Home, part of the world's largest white goods-making group, has confirmed reports that it is considering listing in Hong Kong and privatizing an affiliated company that floats shares in the special administrative region.

Shanghai-listed Haier Smart Home is toying with the idea of absorbing Haier Electronics Group, whose shares trade in Hong Kong, via a share swap but has not put forward an official proposal, the Qingdao-based firm said in a statement yesterday.

Shares in Haier Smart Home [SHA:600690] shot up 6.1 percent to CNY18.22 (USD2.61) in morning trade. Haier Electronics Group [HKG:1169] suspended trading yesterday.

Reuter's reported earlier that day that parent company Haier Group was planning a restructuring in which Haier Smart Home would go public in Hong Kong and offer minority shareholders in Haier Electronics Group, whose total worth is about USD7.7 billion, its own stock in exchange for those of the target. Haier Electronics Group would then de-list.

Haier Smart Home already owns 45 percent of Haier Electronics Group and Haier Group owns another 12 percent. Vanguard Group, sovereign wealth fund Norges Bank Investment Management and BlackRock are among minority stakeholders.

Editor: James Boynton