Chinese brokerage China Galaxy plans Shanghai listing

HONG KONG, March 3 Sun Mar 2, 2014 8:22pm EST

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HONG KONG, March 3 (Reuters) - Hong Kong-listed China Galaxy Securities Co Ltd said it plans to issue up to 1.69 billion A-shares on the Shanghai Stock Exchange, strengthening its capital base in a debut sale of shares in Shanghai.

While pricing details have yet to be determined, the Chinese state-backed brokerage said in a filing to the Hong Kong bourse late on Sunday that the proposed issue of Shanghai A-shares - to be traded only in China - will represent up to 18.35 percent of the enlarged number of shares outstanding.

China Galaxy shares closed at HK$4.91 apiece on Friday, giving the brokerage a market value of $4.77 billion. It raised $1.1 billion in a Hong Kong initial public offering last May.

The Hong Kong-listed shares, known as H-shares, have fallen 27 percent so far this year amid concerns about weakness in China's financial market, compared with a 2 percent drop in the benchmark Hang Seng Index.

The proposed A-share issue is subject to approval from shareholders and regulatory authorities. (Reporting by Donny Kwok; Editing by Kenneth Maxwell)

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