Citi upgraded the China High Speed Transmission (00658.HK) rating from sale to buy, and the target price was raised from 6.8 yuan to 9.3 yuan, mainly because it received a stock exchange and merger proposal from Fengsheng Holdings (00607.HK) at a 45% premium. According to the bank, Fengsheng proposed to exchange 5 new shares for 2 shares of China Transmission as a merger and acquisition. Based on yesterday's stock price, this is equivalent to a 45% premium over China Transmission's stock price. At the same time, the company will maintain the listing position of China High Speed Transmission. The bank also pointed out that Fengsheng Holdings is a property developer that provides green services, investment, and health product services. Fengsheng plans to expand its business to wind power equipment, but the secondary stock exchange merger does not involve cash and will not affect the current operations of Fengsheng Holdings.