CIG (HKEx: 06166) shares surged more than 3% in morning trading, currently up 2.14% to HK$86 with a turnover of HK$141 million.

Market news follows an announcement from the company stating that on July 24, 2026, it entered into a partnership agreement with Shanghai Zhifengzhi to establish a joint venture. The partnership will primarily engage in private equity investment, investment management, and asset management, focusing on investing in non-listed companies through private equity funds and venture capital.

Under the terms of the agreement, CIG, acting as the limited partner, will contribute RMB 800 million to the partnership, representing 99.9988% of the equity, while Shanghai Zhifengzhi, as the general partner, will contribute RMB 10,000, representing 0.0012% of the equity.

The establishment of this partnership represents the company's use of its own funds to collaborate with professional institutions. This strategic move aims to leverage the resources and expertise of professional institutions in the investment field, while maintaining reasonable risk control, to pursue private equity investments and secure medium-to-long-term returns.

Furthermore, by strategically targeting companies in the optical components, chips, and core IC sectors, CIG seeks to strengthen its control over the industrial chain's upstream and downstream segments. This initiative is designed to enhance the company's technical capabilities and supply chain resilience, improve its downstream market coverage, and expand its market influence. It will also diversify the company's investment portfolio and maximize strategic and operational synergies, all of which align with the company's long-term development strategy and its planned use of raised funds.