Hebei Steel to issue new shares

Major Chinese steelmaker Hebei Iron and Steel (Hebei Steel) said it had gained a green light from the Hebei government for its plan to raise up to 16.0 billion yuan by issuing up to 3.8 billion new shares in the Chinese stock market, so as to purchase 100 percent of Hanbao Steel which is currently under the control of state-owned Hebei Steel Group. Hebei Steel was China's second largest listed steelmaker, next to Baosteel, by the output standard in 2009. The company said it would enrich itself with all of the steel assets owned by its parent company and in the end advance toward its goal of making 30 million tons of steel a year.