TRADING in the shares for foreigners issued by Shanghai Haixin Co will begin tomorrow on the Shanghai Securities Exchange.
The plush and flannel manufacturer and distributor recently completed a private placement of 35 million B shares at 70 US cents each, raising US$23.03 million.
The shares were placed with more than 45 local and foreign institutional investors.
With the A shares, the B-share issue has raised about 283 million yuan (about HK$379 million at the official rate), which will be used mainly to pay for the establishment of a series of related joint ventures both in Shanghai and overseas.
Shanghai Haixin's directors forecast an after-tax profit before extraordinary items for the year to December 31 of at least 70.5 million yuan.
The company, which commands 20 per cent of the Chinese market for plush, was set up in 1986 as a joint venture, and was reorganised last month for listing in Shanghai.
Three of the four of the market indexes jumped yesterday on China's stock markets.
