Regulator mulls raising quota in stock connect

    CHINA is considering expanding the quota for cross-investments between Hong Kong and Shanghai, a securities regulatory official said Friday.

    Regulators from the mainland and Hong Kong will closely watch developments in the market and discuss adjusting the quotas under the link between the Hong Kong and Shanghai stock exchanges, an official of the China Securities Regulatory Commission told a news briefing. The regulator gave no hint of when a decision might be reached on whether to adjust the existing limits. Under existing quotas, investors from the mainland can invest up to a daily total of 10.5 billion yuan (US$1.7 billion) in the Hong Kong market and Hong Kong investors can invest up to 13 billion yuan in the Shanghai market.

    Guosen Securities to be halted for refinancing plan

    SHARES of Guosen Securities Co. will be halted from trading from today as the company is planning refinancing, according to a company filing to the Shenzhen Stock Exchange.

    The Shenzhen-based brokerage, the seventh-largest in China, didn’t say when the stock will resume trading or provide further details in the statement Saturday. Shares have surged fivefold to 29.55 yuan as of Friday since the company raised about 7 billion yuan (US$1.1 billion) in an initial public offering in December.

    SAIC Motor banks on sport-utility vehicles

    SAIC Motor Corp., China’s largest auto maker by sales, is banking on sport-utility vehicles (SUVs) to help revive the flagging fortunes of its own brand.

    “The SUV market is growing very fast for domestic [Chinese] brands,” a spokeswoman for the company told reporters Friday. “We’re hoping to catch that market.” Last year, sales of SAIC’s own brands — Roewe and MG — were off 22 percent compared with a year earlier.

    Fosun Pharmaceutical to sell new shares

    SHANGHAI Fosun Pharmaceutical Group Co. will raise as much as 5.8 billion yuan (US$936 million) by selling new shares to repay debt and replenish working capital.

    The Shanghai-listed firm will sell up to 246.8 million shares to eight investors at 23.50 yuan each. That’s 5.2 percent lower than the stock’s closing price of 24.79 yuan in Shanghai on March 27, the last trading day before it was halted for the announcement.