SOUTH China Holdings has arranged to place 87.5 million shares of associate South China Industries at $1.48 a share.

The proceeds of about $126 million will be used to finance South China Industries' involvement in a leather products joint venture in Tianjin.

The venture, with the Tianjin Group Co of Leather Shoes, will have a registered capital of about US$30 million.

The Chinese partner will contribute machinery and factories covering 215,957 sq metres of land.