By Jason Chau

Shares of China HK Power Smart Energy continued rallying on Wednesday after it struck an oil-and-gas cooperation deal with a Saudi energy platform earlier this week.

The energy supplier's stock gained as much as 18% in Hong Kong before closing 14% higher, versus the broader decline in the Hang Seng Index.

That came after a 5.1% rise on Tuesday, when the company said it had entered into a strategic agreement with Al Qimmah Energy FZCO, which trades in oil, petroleum products, gas and petrochemicals.

Under the deal, Al Qimmah will supply oil and liquefied natural gas to China HK Power, which will handle international sales, The parties also agreed to pursue several joint investments, including a new LNG project in China, an oil recovery project in Southeast Asia, and an LNG infrastructure project in North America.

Al Qimmah will subscribe to new shares in China HK Power, a move that the latter expects will strengthen its capital base and enhance its upstream asset portfolio.

"The board believes that this cooperation will bring large-scale, sustainable, and recurring trade business growth to the company and significantly enhance the after-tax profit level," it said.

China HK Power specializes in renewable energy and natural gas solutions, and operates an LNG transport services and sales network across China.

Write to Jason Chau at jason.chau@wsj.com

(END) Dow Jones Newswires

April 22, 2026 05:33 ET (09:33 GMT)

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