HLN Technologies (5HH.SG) +2.7% at $0.380 on above-average volume as the Singapore-based precision components maker seeks to diversify its earnings base by venturing into China’s real estate market.

Despite limited information on developer Tianjin Swan Lake Real Estate, in which HLN will end up with a 17.5% stake after buying 58.33% of its parent Greatly Holdings, the current gains suggest investors are hopeful of the move, coming at a time when HLN’s core manufacturing business is making slow progress after the global financial crisis. But whether the investment pays off remains to be seen since property is a new business for HLN and policy risk remains a major overhang on the sector given China’s intention to rein in home prices.

HLN will fund the purchase with cash and shares. Resistance is expected at the 52-week high of $0.41 set in October.