HONG KONG, March 3 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)