Shanghai:
China’s second-largest brokerage Haitong Securities plans to raise HK$29.94 billion ($3.86 billion) in a private share placement in Hong Kong, the latest mainland broker to plan to tap into soaring share prices to bolster capital.
The brokerage said it would issue 1.917 billion new Hong Kong-listed H-shares at HK$15.62 each to a number of institutional investors. It said Dawn State Ltd, Vogel Holding Group Ltd and Amtd Special Holdings Ltd would be among buyers.
Stocks in brokerages have jumped in recent months, with Haitong posting its highest ever quarterly profit for the three months ended September. Trading volumes have surged, propelled by a surprise cut in China’s interest rate and the launch of a program, known as the Stock Connect, that allows investors in Hong Kong and Shanghai stocks to trade directly on each bourse.
