Leading Hong-Kong-based casual clothes retailer Bossini International Holdings Ltd said on Friday it plans to expand in China with cash raised through a HK$62 million (US$7.9m) rights issue.

The firm said in a statement that HK$50m will be used to fund the expansion of its retail and authorised dealer clothing business in China, with the remaining monies used as general working capital.

The group plans to issue one rights share for every two existing shares at HK$0.46 each. Bossini shares have lost about 17.54 per cent of their value in the last month and 16.07 per cent in the last three months.