Chinese television and mobile phone maker TCL Corp 000100.SZ said on Wednesday it would cut the size of a planned share placement to 1.4 billion yuan ($205 million) from 1.7 billion yuan originally announced in July.

The reduction came because a Hong Kong unit of the company no longer needed a fund injection, TCL said in a filing to the Shenzhen Stock Exchange. The cut would need approval from the stock regulator and shareholders' at a meeting on Oct. 10.

The company still needed money to expand production of televisions using liquid crystal displays (LCD), so it would proceed with the plan to sell new shares to as many as 10 investors including its chairman, Li Dongsheng, it said.

It would spend 742 million yuan in a project to make LCD televisions with screens of up to 42 inches and 654 million yuan for another that makes TVs with screen sizes up to 56 inches.

TCL local-currency A shares listed in Shenzhen closed down 7.47 percent at 2.81 yuan on Tuesday, underperforming the market's .SSEC 1.56 percent drop. ($1 = 6.8135 Yuan)

Source:Reuters