CITIC Securities Co., the biggest stock brokerage on the mainland, plans a new public issue of up to 1.5 billion Hong Kong-listed H shares to supplement capital to help expand businesses.

    In a statement yesterday, the brokerage said the issue would be implemented within 12 months, pending shareholder and regulatory approval.

    CITIC Securities did not say how much money it aims to raise. Its H shares closed at HK$27.75 on Friday, and based on that price, it could raise as much as HK41.6 billion (US$5.36 billion), but mainland companies typically give some discount in pricing new share issues.

    CITIC Securities, the mainland’s top listed broker by market capitalization, became the latest mainland broker to plan to tap into soaring share prices to bolster capital.

    Haitong Securities Co., the second-biggest listed broker on the mainland, has also announced a plan to raise HK$29.94 billion in a private share placement in Hong Kong.

    Stocks in brokerages in China have risen in recent months, buoyed partly by their surging profits, with CITIC Securities’ third-quarter earnings jumping 44 percent from a year earlier.

    Trading volumes have also surged, propelled by a cut in China’s interest rate and the launch of the stock connect program that allows investors in Hong Kong and Shanghai stocks to trade on each bourse.

    CITIC Securities said up to 70 percent of proceeds will be used for the development of margin trading on the mainland and other intermediate businesses. (SD-Agencies)