SHARES in Dongfang Electric Corp, among the worst hit by the massive earthquake in Sichuan Province, bounced back yesterday after it announced major contracts and bank loans that will aid its reconstruction effort.

The May 12 quake has claimed the lives of hundreds of Dongfeng workers and their family members and damaged its main manufacturing site at Hanwang Town, Mianzhu City, which contributed 20 percent of the company's 2007 revenue.

Bank of China agreed yesterday to provide a 30-billion-yuan credit line to Dongfang, China's leading power-equipment maker, to fund rebuilding, international settlement and cash management.

Over the weekend, Huaneng Group, China's largest state power producer, signed a deal worth 4.5 billion yuan with Dongfang to buy power equipment with combined capacity of 4,000 megawatts, according to the State-owned Assets Supervision and Administration Commission.

Dongfang has also won orders from Huadian Power International Corp and China Energy Conservation Investment Corp.

Dongfang surged 8.49 percent to close at 32.70 yuan (US$4.71) yesterday in Shanghai trading. It tumbled 33 percent between last Friday and May 12 when the quake struck. Its Hong Kong-listed shares rose 4.62 percent to HK$26.05 (US$3.34).

Guosen Securities analyst Peng Jizhong said that over the mid- and long-term view Dongfang still has investment value on the back of rising demand as it gradually restores capacity. "At the current share price, we see buying opportunities for long-term investors," Peng said.

A CICC report has said with government help, Dongfang won't lose orders from state power firms.

A Dongfang spokesman said that it is still assessing the losses caused by the earthquake.