China strategy to launch "super fundraising Plan" circle money 7.8 billion market wing Act snake Swallow Elephant

Each trainee reporter, Yang Ke, said that the Chinese strategic Group (00235,HK), a rare "mega-financing scheme", announced in Monday the market was stunned by the fact that the "Penny Shares" (which were below HK $1 but above HK $1) The company plans to place a maximum of 78 billion shares in the share of HK $0.1 per share, accounting for about 38 times times the company's existing issued share capital (3844.64%), and about 97.46% of the issued share capital that has been expanded due to the completion of the placement.　　It is learnt that the issue of placing matters still needs to be approved by the Listing Committee and the extraordinary General meeting.　　After the release of the rights issue, China Policy (00235,HK) led to the market frenzy, so that its Tuesday share price crazy up 110.74%, market analysts believe that the price of the strategy, mainly because of its large share rights raised the market vision, think it has a potential new investment plans.　　Yesterday, the price of the Chinese strategy fell back, the whole day closed to 0.248 Hong Kong dollar, a decrease of 2.75%. Price discount 17.36% According to the announcement, the sale price of HK $0.1, more than the last trading day (this Monday) close to HK $0.121, discount about 17.36%.　　If the placing shares are fully allocated, the total amount of the allotment will be about HK $7.8 billion, while the net amount of the allotment is about HK $7.6 billion and the net proceeds from the placements will be used for potential investment opportunities.　　The announcement also pointed out that if the allocation is completed, the existing shareholders will be greatly diluted the rights and interests of existing public shareholders will be reduced from 81% to 2.05%, and the largest single shareholder-Fan's share of the shares will be reduced from the existing 18.78% to 0.48%.　　The market is looking forward to the "Snake Swallow Elephant" China policy said that, in view of the current good city, the placement of shares or public offerings, debt financing, although may be a substantial dilution of the existing shareholders, but the board still believe that the placing of matters is still better way, in the best interests of the company　　It also acknowledged in the announcement that the company would hold a large amount of cash and would be used for potential investment opportunities once the allotment was completed.　　But that could lead to another problem, under article 14.82 of the current listing rules, if the assets of a listed company are wholly or mostly made up of cash or short-term securities, the listed company may be deemed to be a "cash company", which will be regarded as "unsuitable for listing" and to suspend trading.　　The company said it was not sure whether it would be considered a "cash company" after the placement, although it would use the proceeds from the placements for appropriate investment opportunities to ensure full compliance with the listing rules. In addition, some market participants speculate that with so much cash and bank balances at the moment, and with very few bank loans, the plan for such a large placement would be like that of Li Ka-shing, which was bloodless by 00001,HK, a company with less than HK $700 million worth of assets, to Hutchison Whampoa ( 00013,HK), inThe future staged "Snake Swallow Elephant" drama.