China's Ningbo Huaxiang plans placement, not offer

SHANGHAI, March 11 (Reuters) - Ningbo Huaxiang Electronics Co 002048.SZ said on Tuesday it would raise money via a private placement of shares rather than through a public offer, after an investor backlash against public offers in China's weak stock market.

The small car parts maker said it planned to raise about 1.04 billion yuan ($146 million) to expand production capacity by placing as many as 40 million new shares, or 14.6 percent of its existing share capital, with up to 10 institutional investors.

The company had originally announced it would conduct a public offer of new shares, but decided on Monday to change this plan to protect the interests of shareholders, it said without elaborating.

China's stock market has tumbled in recent weeks because of concern that it may not be able to absorb huge amounts of fresh, publicly traded equity this year.

Late last month the China Securities Regulatory Commission warned companies against making equity issues that could hurt the market.

Fuyao Group Glass Industries (600660.SS: Quote, Profile, Research, Stock Buzz) subsequently scrapped a 3 billion yuan share offer, citing opposition among its shareholders. Shares in Ping An Insurance (601318.SS: Quote, Profile, Research, Stock Buzz) have plunged 34 percent since mid-January, when it announced plans for a mammoth $17 billion issue of equity. ($1 = 7.10 yuan) (Reporting by Andrew Torchia; Editing by Edmund Klamann)