Chinese Firms Soar Following Yuan-Based Strait of Hormuz Transaction

Chinese companies engaged in cross-border payments experienced a notable surge in share prices on Friday. This came in the wake of reports indicating that the Chinese yuan was used to pay tolls for ships transiting the Strait of Hormuz, a crucial maritime passage.

CNPC Capital Co., the financial wing of China National Petroleum Corp., saw its shares rise by 7.9% by the end of the trading day. Meanwhile, Beijing Cuiwei Tower Co. witnessed an even more impressive leap, rising 10% at closing.

The upward trend extended to Lakala Payment Co. and Shenzhen Forms Syntron Information, which climbed as much as 8% and 9%, respectively. The rally followed a Ministry of Commerce announcement referencing Lloyd's List, which confirmed that passage fees amounting to $2 million could be settled using the Chinese yuan.