China Securities Finance plans 10b yuan capital increase

China Securities Finance Corp Ltd plans a 10 billion yuan ($1.58 billion) capital increase via the issuance of 10 billion shares, the company said on Oct 7.

The registered capital of the company increased from 7.5 billion yuan to 12 billion yuan in September, and it plans to expand its capital further to facilitate refinancing operations, which started in late August.

The company will see its registered capital growing to 22 billion yuan.

China Securities Finance serves as centralized financing body in China from which securities companies are allowed to borrow money or stocks on behalf of their clients to facilitate margin trading and short-selling activities.

Five billion shares among the 10 billion shares will be injected to non-bank financial intermediaries with private capital holdings, the company said.

Another 5 billion shares will go to non-bank financial intermediaries with State-owned capital holdings.