Capital Group raises stake in China Railway Construction to 7.01%

Oct. 20, 2009 (China Knowledge) - The Capital Group Companies Inc recently raised its shareholding in China Railway Construction Corp Ltd<601186><1186> to 7.01% from the previous 6.78%, according to a statement filed with the Hong Kong Stock Exchange on Oct. 13.

The Capital Group said that it bought 4.77 million H shares of China Railway Construction, China's largest state-owned construction enterprise, for HK$53.2 million. The average share price of the transaction was HK$11.16 apiece.

In the period from Oct. 7 to Oct. 13, the U.S. company bought a total of 23.89 million H shares of China Railway Construction, raising its stake in the Chinese company by 1.15 percentage points.

Zhao Guangfa, executive director of China Railway Construction said last month that the company hopes to increase its revenue to RMB 280 billion and its net profit to RMB 4.5 billion by further exploring overseas markets in the second half.

H shares of China Railway Construction edged down 1.48% and ended at HK$10.62 yesterday.