Rush to raise cash in China burning stock investors

BEIJING: China’s cash-strapped companies are going to new lengths to raise money from the booming stock market, even if it comes at a cost to existing shareholders.

Nine firms have said they plan to raise a combined 40.5 billion yuan (US$6bil) through rights issues since January, almost twice the amount announced all of last year, according to data compiled by Bloomberg. That includes Tianqi Lithium Corp and Xinjiang Tianrun Dairy Co, whose shares slumped 5.4% and 10% immediately after their respective announcements.