China’s Great Wall to Issue Shares to Fund Diesel Development

China’s Great Wall Automobile Holding Co. Ltd. plans to sell shares to fund the development of new diesel engines, expand its technical centers and establish a testing center.

The auto maker says it plans to issue up to 121.7 million A shares on the Shanghai Stock Exchange, representing 11% of its existing share capital, subject to Chinese government approval.

The Shanghai Daily newspaper says Great Wall does not give a timetable for the share issue or specify a share price.

The auto maker hopes to raise RMB2.8 billion ($367 million) under the scheme, including RMB531 million ($72 million) to develop transmissions and RMB742 million ($99 million) to expand its technical center.

Great Wall also aims to enhance its product range to include sedans.