Macro-source securities proposed to raise 7 billion yuan additional funds

February 21, Hongyuan Securities (000562.　　SZ) issued a notice of the board resolution, announced that the proposed non-public offering of not more than 500 million shares, the total amount of capital raised not more than 7 billion yuan.　　Hongyuan Securities said that the fund-raising will be all used to increase capital, replenish operating capital, expand the scale of business, especially the scale of innovative business to enhance the company's continued profitability and market competitiveness.　　The targeted issuance of the issue of more than 10 objects, the issue price is not less than 15.10 yuan/share.　　Which, the first major shareholder China Bank Investment Limited Liability company (hereinafter referred to as China Construction Investment) proposed subscription amount of not less than 1.5 billion yuan and not more than 3 billion yuan, China investment is not involved in the price of the bidding process, but the commitment to accept other issues to purchase the auction results and other issuers with the same price subscription.　　So far, China has invested directly in macro-source securities of about 965 million shares, accounting for 66.05% of total equity. The announced targeted additional plans also said that other securities companies have continued to raise net capital levels through IPOs or refinancing in recent years, while Hongyuan securities have not been refinanced since 2007, with net capital ranking falling from the 3rd in late 2006 (about $3.1 billion) to 21st place at the end of 2009 (about 4.7 billion yuan),　　And with the industry's top-ranked securities companies net capital scale gap is large.　　According to the regulations of the SFC in recent years, the securities companies only have a considerable capital scale in order to seize the opportunity and win the opportunities in the acquisition of business qualification and expansion of business scale, in order to enhance their competitiveness and maintain the competitive position of the market.　　At present, the directional additional program still needs to obtain the approval of the general meeting of shareholders and the SFC approval. Due to the planning of refinancing major issues, Hongyuan Securities since February 15 suspension. Before the suspension of trading day February 14, Hongyuan Securities trading closed at 18.37 Yuan.