HUNDSUN Technologies Inc., partly owned by Jack Ma’s financial investment company, yesterday surged its daily limit in Shanghai trading after disclosing that government-backed funds bought its shares despite news of a regulatory probe.

    The Hangzhou-based software developer said late Tuesday that Central Huijin Investment Co. owned 1.76 percent of its shares as of Aug. 14, while China Securities Finance Corp. (CSFC) held 1.23 percent.

    Central Huijin is a unit of China’s sovereign wealth fund while CSFC was mandated by the government in July to buy stocks as part of efforts to stem a stock market rout.

    Hundsun Technologies said in a separate statement late Tuesday that its wholly owned unit Hundsun Network is being investigated by the China Securities Regulatory Commission (CSRC) for suspected violations of the nation’s securities and futures law and regulations, without being more specific.

    Investors priced in some of the risk associated with the CSRC probe and turned more optimistic on Hundsun shares following news of the stake purchases, said Zhang Yanbing, a Shanghai-based analyst at Zheshang Securities Co.

    Government entities like CSFC buying Hundsun shows support to the company and gives confidence to other investors, Zhang said.

    In addition to holdings by the two State-backed investors, 10 fund management firms each own 0.44 percent of Hundsun in portfolios related to CSFC, according to the statement.

    (SD-Agencies)