Shares of China Longyuan Power Group Corp (00916.HK, 001289.SZ) surged on Tuesday after the renewable energy company announced a major acquisition deal aimed at significantly expanding its portfolio.

China Longyuan has agreed to acquire equity interests ranging from 51% to 100% in eight energy companies from its parent China Energy Investment Corp. The total consideration for the deals amounts to RMB 1.69 billion (around $240 million).

The eight target companies, including Junan New Energy and Hukou Wind Power, have a combined installed capacity of 2 million kilowatts in renewable energy assets like wind power across various regions in China. The acquisitions are expected to bolster China Longyuan's leading position in the country's renewable energy sector and provide a solid boost to its operational scale.

Investors cheered the deal announcement, with China Longyuan's shares soaring as much as 10% in Hong Kong trading and over 5% on the Shenzhen bourse. The steep rally reflects optimism around the company's efforts to accelerate its shift towards clean energy sources amid China's push for carbon neutrality.