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. He said the parent company would continue to support its listed arm. 'It's just a normal practice for the parent company to buy and sell stock. BEI bought up lots of shares when the stock price fell between $6 to $8,' he said. Richard Taylor, head of investment banking for CLSA Global Emerging Markets, the arranger of the sale, said it was purely a sell-down of shares by parent BEI. Mr Taylor said the placement had received a good response. Demand for high-quality mainland companies had risen following Beijing's cut in interest rates this week. 'We were oversubscribed within 30 minutes. We closed the book when we were three times covered,' he said. Mr Taylor said well-known quality companies would be able to raise money. 'I think we might see some [placements] for the more well-known companies,' he said. 'It won't be easy for any of the second or third-liners to raise money in the market. Investors remember the problems in the past and I don't think they'll chase the wrong companies.' Market sources said Stone Electronic Technology was planning a rights issue but the company denied any plan to raise funds. The share price of Stone tumbled 10.48 per cent or 13 cents, and closed at $1.11.