News that the son of Chinese premier Wen Jiabao has taken the helm of APT Satellite Holdings Ltd.'s state-owned parent sent shares of the Hong Kong-traded small cap up nearly 50% this week, as investors bet that the high-profile appointment could spur better growth opportunities for the satellite services provider.

The elevation of Wen Yunsong, who earlier co-founded private equity firm New Horizon Capital, as chairman of China Satellite Communications Co. comes just months ahead of his father's expected retirement from the senior echelons of government amid a once-in-a-decade leadership succession. China Satcom is one of the country's six telecommunications operators.

Mr. Wen became vice chairman of China Satcom in 2010 after leaving New Horizon.

The younger Wen, also known as Winston Wen, joins an elite club of so-called princelings—children of top Communist Party cadres—to take charge of important Chinese companies. Notable princelings include Li Xiaolin, daughter of former premier Li Peng, the head of Hong Kong-listed China Power International Development Ltd.

Princelings are also highly sought after by multinational firms because of their connections to government that are expected to bring business opportunities. Levin Zhu, the head of investment banking at China International Capital Corp., is the son of another former premier, Zhu Rongji.

Shares of APT Satellite were up a further 4.2% in Hong Kong at the midday break on Friday, after taking a breather on Thursday. Since Monday, the stock has jumped 44%, as investors became aware of Winston Wen's promotion, announced late last week. The company, which operates five satellites covering Asia, Australia, Europe and Africa, posted a mediocre 5% increase in first-half 2011 net profit, and faces heavy competition among other satellite providers in the region.

APT Satellite plans to launch a new satellite by September to further enhance its reach in the region.

"Investors were betting that the latest appointment could bring in better growth prospects to the listing unit," said Alex Wong, a director at Ample Finance Group. "However, it's difficult to quantify his value to the firm and I won't suggest investors to chase the stock given the recent rally," Mr. Wong added.

Still, analysts said China Satcom enjoys a near monopoly in China's satellite business, a position that will continue to benefit the Hong Kong unit.

"[China Satcom is] an indigenous Asian company and more importantly they're the only authorized satellite operator in China," said Vivek Couto, executive director at research firm Media Partners Asia. He said this gives the state-owned company a better competitive edge against its peers, such as U.S. based Intelsat, as well as Hong Kong-listed Asia Satellite Telecommunications Holdings.

Mr. Couto also said there is huge demand for satellite services on the back of stronger demand for high-definition television channels as well as the proliferation of direct-to-home satellite services across Asia.