SUNING Appliance Co, the second-biggest home appliance chain in China, plans to raise 2.4 billion yuan (US$311 million) by selling new shares to finance expansion. The Nanjing, Jiangsu Province-based retailer will sell 73 million yuan-denominated shares for no less than 33.3 yuan each to 10 institutional investors, it told the Shenzhen stock exchange over the weekend.

The funds will be used to open 250 stores nationwide, adding up to 351 stores the chain runs by the end of last year. Suning opened 136 stores in 2006. President Zhang Jindong said earlier this year that store numbers will more than triple to 1,500 by 2010.

Chinese home appliance chains are broadening their store network nationwide to fend off competition both from domestic and overseas counterparts.

Suning's shares dipped 0.47 percent yesterday to 37.8 yuan in Shenzhen, posting a gain of more than 60 percent since the start of this year.

Source:佚名