The news behind this mega-volume surge? I have no idea. Nothing on the wires, EDGAR, or even the Bloomberg terminal. Nothing.
There are a few rumors swirling around. Most surround a huge contract that Highway Holdings will announce within a week (Chrysler, etc.). Could be, but there are reasons to be skeptical:
Most high volume surges are apparent from the open, but yesterday HIHO opened normally and did not gain price or volume traction until 15-20 minutes into the trading day. Note that the Chinese business day was long over by this time. HIHO has a history of surging in the first few trading days of the year, then retreating. Chinese markets were closed for a holiday. It is certainly possible, but perhaps unlikely, that HIHO, was closing a huge deal during the holiday.
We should find out the cause in the coming days, but I decided not to wait. When I saw shares trading above $6 this morning I put in a sell order, which was filled at $6.25. I still like Highway Holdings, and will try to put on a position again if it retreats close to $4.
HIHO 1-yr chart
Disclosure: Author has no position in HIHO.