Li Ning says plans to issue convertible securities

HONG KONG Jan 18 (Reuters) - Chinese sportswear brand Li Ning Co Ltd said on Wednesday that it plans to issue convertible securities and its shares are suspended from trading pending an announcement on details of the offer.

Shares in Li Ning closed at HK$6.72 on Tuesday, after losing nearly 60 percent over the past year.

After years of breakneck expansion, local brands such as Li Ning and China Dongxiang (Group) Co Ltd are grappling with shrinking margins, slowing sales growth and mounting inventories of outdated products, threatening the sector.

While the Chinese brands struggle, Nike Inc and Adidas AG, armed with heavy investment in research and development plus marketing expertise, are gaining market share in the world's second-largest economy. (Reporting by Charlie Zhu; Editing by Chris Lewis)