Shares in Guanghui Energy rose 4.6% on Friday after the Xinjiang-based coal and gas producer said it would issue Rmb5 billion $197 million in a preferred share offering to qualified investors, the first placement of such instruments in China’s onshore market.
The proposed plan came as a surprise to market participants, who had expected one of the big banks to issue first, particularly after Chinese banking and securities regulators published detailed rules on the issuance of preferred shares by commercial banks on April 18. But analysts say that banks still need further guidance on accounting treatment.
Shenzhen-listed Guanghui plans to issue up to 50 million preferred shares...
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