Hua Xia is one of the latest Chinese lenders to announce fundraising plans, after rivals including Bank of China and China Construction Bank unveiled schemes to raise tens of billions of dollars to replenish capital after opening their lending books last year.

Hua Xia is looking to raise US$3bn through share placements; its selected institutional investors include steel mill Shougang Corp, State Grid and Deutsche Bank.

After the share placement, pending respective approvals, Shougang would become Hua Xia’s biggest shareholder, with a 20.28% stake, replacing Deutsche Bank which would have a 19.99% stake, the maximum stake a foreign company can own in a Chinese bank.

Hua Xia was advised by the Beijing-based Concord & Partners, which has 26 partners and 40 lawyers across offices in Beijing, Shanghai and Shenzhen. Shougang was represented by Freshfields.

In December last year, Shougang acquired Delphi Corp’s global suspension and brakes business. That time it was advised by its long-term legal advisor Vinson & Elkins and a long list of international advisors including Hunt & Hunt, Arnecke Siebold, CT Chan & Co, Hastings & Co, Luthra & Luthra, Squire Sanders and Taiwan Commercial Law Offices.