REO's China unit shares soar 43pc on very light trading
SHARES in China Real Estates Opportunities shot up 43pc, or by £4 (€5.79), yesterday to £13.25 (€19.18) on light trading volumes.
The company, which is backed by Treasury Holdings' Johnny Ronan and Richard Barrett, has surged since it floated just before Christmas at less than £2.
CREO which floated on AIM as a property investment shell company has yet to buy a single property.
But there is increasing market speculation it is getting closer to being able to announce its first transactions in China.
Yesterday, however, chairman Ray Horney said: "I don't know the reason for it (the huge rise in his company's share price).
"There are numerous things we are looking at. When we do make an announcement, it may be that it will be more than one," he said.
But he stressed that no possible deal was at or near the point where it needs to be disclosed to the market.
In January 2005 Irish developers Treasury Holdings signed a €1.2bn deal with a Chinese partner to develop a giant leisure resort on an island in the middle of the Yangtze river in Shanghai.
It has since opened an office in Shanghai to consider further deals.
Tipperary-born businessman and Treasury China president Des O'Connor is working with the Irish developers having previously helped bring Formula One racing to China.
Its partner in the island development, the Shanghai-based Dongtan Company, is a large and well-connected player in the China.