GF Securities Said to Plan Over $1 Billion Hong Kong Share Sale

GF Securities Co., China’s third-biggest publicly traded brokerage, plans to seek more than $1 billion from a first-time share sale in Hong Kong, people with knowledge of the matter said.

GF Securities, which is already listed in Shenzhen, aims to start the share sale in the second quarter, the people said, asking not to be identified because the information is private.

The company follows Citic Securities Co. and Haitong Securities Co., the country’s two biggest brokerages, in seeking to raise funds in Hong Kong to boost margin financing. Chinese investors are increasingly buying stocks on credit after a 36 percent rise in the Shanghai Composite Index during the past three months.

GF Securities, based in the southern Chinese city of Guangzhou, plans to use part of the share sale proceeds to boost financing for its customers and develop its stock-lending business, it said in a filing to the Hong Kong exchange today. GF Capital (Hong Kong) Ltd. and Goldman Sachs Group Inc. are joint sponsors for the sale, the filing shows.

Shares of GF Securities have more than doubled in the past year, giving it a market value of $25 billion. A Hong Kong-based external spokeswoman for GF Securities declined to comment on the share sale plan.

IFR reported the size of the planned share sale earlier today.

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