It’s been a busy day for China Holdings Inc. (OTCBB: CHHL). The company’s share prices rose an impressive 40 percent today, settling at a price of 3 cents a share by noon CDT.The source of the jump is the China Holdings’ recent statement regarding a joint venture with Aroma International Petroleum Ltd. to develop a 1.2 million cubic meter oil storage facility. According to the statement, China Holdings executed a memorandum of understanding with Aroma to complete the development of the massive tank, which, when completed, would hold an estimated 7.5 million barrels of oil. To facilitate the venture, Aroma will purchase 70 million common shares of China Holdings stock – representing approximately 30 percent of the company.
The facility itself will be built in Yangkou Port, China, just off the coast of the Yellow Sea, because the location reportedly “possesses a strategic proximity to Shanghai and the North part of Jiangsu Province” and is well-positioned to link with other key water-based delivery operations.
This is excellent news for China Holdings. As a development stage company with a number of global assets, China Holdings works with multiple China-focused businesses like pharmaceutical, real estate, utilities, energy, and financial institutions. By joining with wholly-owned petrochemical company Aroma, China Holdings will be able to increase its energy holdings during a period when oil is extremely profitable.