(Yicai Global) Jan. 17 -- Shares in electric vehicle battery maker Guoxuan High-Tech hit the 10 percent daily limit up this afternoon after reports that German auto giant Volkswagen was planning to buy a 20 percent stake.

Its stock price [SHE:002074] had hit the threshold, CNY18.79 (USD2.73), by 1.15 p.m. and has remained there since, giving it a market cap of CNY21.4 billion (USD3.1 billion).

Reuters reported earlier today that Volkswagen would buy a 20 percent stake in Guoxuan as it accelerates its new-energy push into the world's largest auto market, though the 21st Century Business Herald said the company's financial department denied such knowledge.

Editor: James Boynton