A-Power Stock Price Surges

(Updated to include comment on Chinese investment in environment)

LIAONING, China (TheStreet) -- A-Power Energy Generation Systems(APWR Quote) hit a 52-week high of $16.68 on Wednesday morning, possibly related to rumors in the market that the stock was going to be added as a component of the IBD 100 Index.

While the rumors about the index addition could not be confirmed, news from the Chinese government could also be behind the surge: the government announced a doubling of its environmental budget to $454 billion through 2015.

A-Power stock was also trading above its average daily volume of 978,100, with more than 2.2 million shares trading hands a few hours into the trading day.

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While A-Power had come back down slightly from the 52-week high it hit early on Wednesday, by mid-day it was still up more than 10% on the day.

Investors were reportedly spreading rumors about the IBD Index addition on Friday morning. The IBD 100 Index is recomposed every Friday morning -- and any changes released to the market at 5 p.m. on Friday -- ahead of official appearance in the Monday edition of Investors Business Daily.

The company's stock price has experienced some recent appreciation on the announcement of a wind project in Texas at the end of October, and also talk about developing a manufacturing site in the U.S., which sent the stock price up last week also. The company could not be immediately reached for comment.

-- Reported by Eric Rosenbaum in New York

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