China's commerce ministry has approved a plan by Goldman's unit GS Capital Partners Aurum Holdings to pay 716.7 million yuan (US$94 million) for the Midea stake, according to a statement today to the Shenzhen Stock Exchange. The Chinese company's stock has surged sixfold this year, jumping 5.8 percent yesterday to 35.88 yuan in Shenzhen, Bloomberg News said.

New York-based Goldman, the world's biggest securities firm, is taking advantage of China's move to let overseas investors purchase strategic stakes in its publicly traded companies. Goldman bought stakes in Fuyao Group Glass Industries Co, China's biggest maker of automotive glass, and Shuanghui Group, the nation's largest meat processor.

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Midea said in November last year Goldman will buy 75.6 million new shares for 9.48 yuan each, or 10.7 percent of the company's enlarged capital.

Overseas investors can acquire strategic stakes in Chinese publicly traded companies provided they buy at least a 10 percent stake and hold the stock for three years, the government said last year.

Midea, which makes air conditioners, electric fans, rice cookers and other appliances, said in April that its first-quarter profit almost tripled from a year earlier to 195 million yuan. Sales increased 38 percent to 7.1 billion yuan in the same period.

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