SHANGHAI, Aug 30 (Reuters) - China’s Jingwei Textile Machinery Co (000666.SZ) - the biggest shareholder of troubled Zhongrong International Trust Co - saw its stock surge on Wednesday after offering to buy out investors who object to the firm’s plan to switch bourses.

Jingwei owns 37.5% of Zhongrong International Trust which has missed payments on dozens of investment products since the end of July, investor sources said, triggering contagion fear in an economy suffering from huge debt in the real estate sector.

Delisting from the Shenzhen Stock Exchange could shield public market investors from liquidity woes at Zhongrong, a major shadow bank with heavy exposure to real estate.

“Due to changes in market conditions, the company’s operations face huge uncertainty that could have a major impact,” Jingwei said in an exchange filing late on Tuesday.

Under a proposal from parent China Hi-tech Group (600730.SS) intended to “protect the interest of small shareholders”, Jingwei will withdraw its Shenzhen listing and seek to float on the New Third Board, a smaller equity trading venue in Beijing that has a high threshold for investor participation.

Asset manager Zhongzhi Enterprise Group, the second-biggest shareholder of Zhongrong International Trust, told investors at a videoed meeting this month that it is facing a liquidity crisis and will restructure debt.

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