Luzhou Bank Co. Ltd.'s board approved an issue of up to 360 million new H shares, representing approximately 15.90% of the bank's total existing issued share capital.

The net proceeds from the issuance will be used to replenish the Chinese lender's core Tier 1 capital, according to a Jan. 10 filing.

An application has been submitted to list the new shares on the Hong Kong bourse. The pricing of the shares and the timetable for the issue have yet to be determined.

As of Jan. 10, US$1 was equivalent to 6.99 Chinese yuan.