Haitong to issue shares

Haitong International Securities Group said on Wednesday it planned to issue up to HK$3.2 billion ($413 million) worth of rights shares, raising capital for business development and refinancing.

The Chinese brokerage plans to issue up to 841.7 million rights shares, offering one rights share for every two existing shares held at HK$3.8 apiece, it said in a statement.

The issue price represents an 11.2 percent discount to the stock's previous close, the statement added.

Haitong said the rights issue would strengthen its capital base and its financial position without increasing finance costs.