China's largest brokerage by net profit, CITIC Securities, confirmed that its board has approved a plan to sell up to 350 million new A-shares, the Wall Street Journal reported. The proceeds from the sale, which still requires shareholder approval, have been earmarked for increasing the firm's capital and expanding business operations. If the full number of shares is issued, it would represent 10.6% of the firm's expanded capital. Based on Tuesday's share price, the offering would be worth around US$2.67 billion. After a brief suspension in trading following the announcement, CITIC Securities shares climbed 8.2% to close at RMB58.48 (US$7.65). The brokerage also said its board had approved plans to pay up to US$52.3 million for a 35.7% stake in fund management company China Asset Management. The stake is currently held by Southwest Securities. CITIC Securities announced in March that it would be taking Beijing Securities' 20% stake in the fund management firm, which would give it an overall holding of 60.7%.
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