Shares of Singapore-listed Chinese sportswear maker China Hongxing (CHXS.SI) rose as much as 8.1% to a seven-month high on Tuesday after the firm told Reuters it plans to open 2,000 new stores by end-2011.

At around 0704 GMT, China Hongxing’s shares were traded at $0.20, with over 57.4 million changing hands. It was the day's third most actively traded stock by volume.

 

“It seems like the firm may be back on track for its expansion plans. The counter has been undervalued because of their drop in profits but if they can make a comeback that will boost their shares,” said a trader at Kim Eng Securities.

 

Besides outlining China Hongxing's expansion plans, CEO Wu Rongzhao also said he hopes the firm will be able to report positive revenue growth for 2010, helped by the expansion of its product lines to include casual wear. 

 

The firm's revenues were down about 5% in the first half.