The parent of Beijing Enterprises has raised $415.5 million from a share placement in what may herald a series of cash calls following a surge in red-chip stocks.
Beijing Enterprises Investments (BEI) sold 30 million shares in the listed company to fund managers at $13.85 per share.
The placement reduced BEI's interest in Beijing Enterprises from 66.51 per cent to 61.71 per cent.
The price was a 4.15 per cent discount to Beijing Enterprises' close yesterday of $14.45. The stock rose 7.03 per cent, or 95 cents, yesterday.
The red-chip index has soared 13.26 per cent in the past two weeks, closing at 1,046.41 yesterday compared with a low of 923.82 on May 28.
Beijing Enterprises vice-president Fang Fang denied the parent company's share disposal reflected pessimism about the company's future.
'It's only a small portion, just few per cent of the company's total issued shares. After all the parent company still maintains a controlling stake of the company,' Mr Fang said.