Hengtou Securities (HKG:1476) has entered into a capital increase agreement with Huarong Zonghe Investment, resulting in a dilution of Hengtou Securities' stake in New China Fund to 52.99% from 58.62%.
Huarong Zonghe Investment's stake will increase from 30.31% to 43.18%, according to a Friday filing with the Hong Kong Stock Exchange.
The move will increase New China Fund's registered capital to about 627.8 million yuan from 217.5 million yuan.
New China Fund will remain as Hengtou Securities' subsidiary following the capital injection.
The fresh capital will be used for business development and capital strength enhancement needs.
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