Shares of Sinotrans Ltd. soared nearly 6% in Monday morning trading in Hong Kong, fueled by plans from the logistics company's controlling shareholder to significantly increase its stake.

In an announcement, Sinotrans said its parent company Sinotrans & CSC Holdings intends to purchase additional Sinotrans shares worth between RMB250 million and RMB500 million (HK$290 million - $580 million). The planned purchase would raise Sinotrans & CSC's shareholding from its current level of around 33.9% of Sinotrans' Shanghai-listed A shares.

Analysts view the major share purchase as a strong vote of confidence from the controlling shareholder in Sinotrans' future growth prospects. "The increase in shareholding underscores the parent company's commitment to Sinotrans and its strategies," said Joyce Lam, an analyst at CLSA. "It provides reassurance to investors and signals that Sinotrans is well-positioned to capitalize on opportunities in China's rapidly evolving logistics landscape."