SHENZHEN China Bicycle, which is looking to enlarge its bicycle sales and distribution networks in China, has announced rights issues of both its A and B shares, a move designed to raise 182 million yuan (about HK$244 million) and $262 million respectively. About 34.34 million B shares will be issued to existing holders on a five-to-one basis at 8.7 yuan per share. The issue price represents a discount of 10 per cent to the closing price on the Shenzhen exchange on Friday. Net proceeds of about 462 million yuan from both placements will be used to help the enterprise's efforts to win more business in China, with half going to finance the establishment and opening of new sales and distribution networks. About 53 million yuan has been earmarked to finance an investment in the Nanchang Lihua Shopping Mall in Jiangxi. The company believes that taking part in property development will enable it to secure prime locations in major cities for its central retail outlets and wholesale distribution centres. Another 12 million yuan has been earmarked for investments in Dushu Village. The rest will be finance the development of composite products and as general working capital. Standard Chartered Asia is the issue's underwriter.