Dec 30 (Reuters) - China Communications Services Corp Ltd proposed on Friday a two-for-10 rights issue to raise about 2.99 billion yuan ($473.2 million), below a revised target of 4 billion yuan, to expand its business at home and overseas.

Under the proposal, the company will issue 398.57 million Hong-Kong listed H-shares at HK$3.19 each and 755.77 million domestic shares at 2.59 yuan per share, it said in a statement to the Hong Kong stock exchange.

The subscription price for the H rights shares represents a 8.9 percent discount to the stock's close of HK$3.50 on Friday.

Shareholders will be allocated two rights shares for every 10 shares held, it said.

A weak equity market condition has force the company to repeatedly cut its fund raising target.

The Chinese telecommunications support services provider said in May that it aimed to raise up to 4 billion yuan through a right issue, down from an originally expectation of 6 billion yuan announced in March.

Its H-shares lost about 24 percent this year against a 20 percent fall in the blue chip Hang Seng Index.

CITIC Securities Corportate Finance (HK) Ltd is the underwriter of the H-share rights issue, the company said.

China Telecom, China Communications' largest shareholder, will subscribe for all the domestic rights shares allocated to the company, it added. ($1 = 6.3192 Chinese yuan) (Reporting by Alison Leung; Editing by Jon Loades-Carter)