Shenzhou International, a leading Chinese garment exporter, has raised $503 million through a convertible bond issue to help it fund the construction of more factories in Southeast Asia as it seeks to escape rising costs at home.
The Hong Kong-listed company makes clothing for international brands such as Uniqlo, Adidas, Nike and Puma from its production base in Ningbo, to the south of Shanghai, but rising wages and high domestic cotton prices have made it more expensive to manufacture in China.
A stronger renminbi currency has also reduced export demand the currency appreciated by 26.4% against the yen during 2013.
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