News on May 17th,$China Investment Fund Corporation (00612.HK) $It rose rapidly by 11.4% to HK$4.2, with a total market capitalization of HK$5.7 billion.

The company announced last night that it would place up to 40 million new shares, equivalent to 2.87% of the expanded share capital; the placement price was HK$3.05, a 19.10% discount compared to the closing price on the previous trading day (16th). The total amount raised was HK$122 million, with net proceeds of HK$118 million.

The directors believe that the proposed placement is a good opportunity for the company to raise capital to strengthen its capital base (including working capital) and improve its financial position, which will enable the company to better invest in listed and unlisted securities.