HAITONG Securities, China’s second-largest brokerage, plans to raise HK$29.94 billion (US$3.86 billion) in a private share placement in Hong Kong, the latest mainland broker to plan to tap into soaring share prices to bolster capital.

    In a statement issued yesterday, the Shanghai-listed brokerage said it would issue 1.917 billion new Hong Kong-listed H shares at HK$15.62 each to a number of institutional investors. It said Dawn State Ltd., Vogel Holding Group Ltd. and Amtd Special Holdings Ltd. would be among buyers.

    Stocks in brokerages in China have jumped in recent months, with Haitong posting its highest ever quarterly profit for the three months ended September. Trading volumes have surged, propelled by a surprise cut in China’s interest rate and the launch of a program, known as the Hong Kong-Shanghai stock connect, that allows investors in Hong Kong and Shanghai stocks to trade directly on each bourse.

    CITIC Securities Co., China’s top listed broker by market capitalization, also may cash in on rising share prices. On Dec. 7, it said it does not rule out the possibility of shoring up its capital via a share issue within the next three months, without disclosing what it would use proceeds for. (SD-Agencies)