CSRC allows steel firm's expansion

The China Securities Regulatory Commission approved Wuhan Steel Processing plans for a US$1 billion second A-share issue despite government efforts to cool down investment in the steel sector. Company officials said that the new capital from the issuing will be used to acquire assets from parent firm Wuhan Iron & Steel Group, adding pig iron and smelting capabilities to the firm's downstream processing operations. Wuhan Steel, the mainland's third largest steel producer, plans to increase production lines from two to seven and the total number of products from 200 to more than 500. Analysts said that CSRC approval of the share issuing shows that the government is focusing investment curbs on low-end producers.