Shares of Sinopharm Group jumped on fund buying fueled by hopes for more merger and acquisition deals as China's largest pharmaceutical products distributor moves to expand its revenue base.

"We have a very bullish view on the stock as the company is in one of China's booming, high entry barrier industries. More M&A deals are expected as it grows through acquisitions," said William Lo, an analyst at Ample Finance Group.

Sinopharm, one of the most heavily traded stocks in Hong Kong, rose more than 9 percent to an all-time high of HK$31.50 ($4.06) since listing on September 23, 2009.

"Since it is the market leader in this low-risk distribution segment of the medical industry, we don't expect to see any competition from rivals and that also fits the appetites of many investment funds," Lo said.

Analysts said investment risks for Sinopharm were relatively low compared with those involved in research and development, and that made the stock particularly appealing.