Paper maker sells large A-share stake

A Shenzhen-listed paper maker will sell a 30% stake to CVC Asia Pacific in a US$623-million deal, one of the biggest private equity investments in China, the Financial Times reported. Shandong Chenming Paper, one of China's biggest paper companies, said in a statement it plans to issue 1 billion A-shares to CVC Asia Pacific, a joint venture between CVC Capital Group and Citigroup. The deal follows new rules introduced by Beijing that smooth the way for some foreign investors to buy A-shares. In the past, foreign investors wanting to buy strategic stakes in listed companies had to purchase non-tradeable shares. The rule change allows foreigners to buy a strategic stake in a company's A-shares under certain conditions, including that the stake is retained for three years.