CHINA Cosco Holdings Co (stock code: 600428), operator of Asia's largest container line, may raise as much as 15.1 billion yuan (US$1.98 billion) in one of the biggest share sales in China this year to buy new ships.

The company, based in Tianjin, will sell 1.78 billion shares in Shanghai at 7.60 yuan to 8.48 yuan each starting today, it said in a statement to the city's stock exchange. The sale will probably be the fourth biggest of those approved in China so far this year, according to data compiled by Bloomberg.

China Cosco plans to use the funds to help its container-shipping unit pay for 12 new vessels and to buy a stake in a logistics company. Shipping lines are expanding their fleets as Wal-Mart Stores Inc and other retailers sell more Asian-made clothes, toys and televisions in the US and Europe.

"The outlook for container shipping has improved and freight rates are recovering,'' said Edward Wong, an analyst with Quam Ltd. in Hong Kong. ``It's also the right time to raise funds as investors are still willing to pay a higher valuation for Chinese stocks.''

China Construction Bank Corp, the nation's third largest, also today announced plans to sell as many as 9 billion shares in Shanghai, which may raise about US$5.5 billion based on the company's Hong Kong stock price. The sale is yet to be approved.

The two sales will be among the first tests of investors' appetite for new shares since Mainland stock markets plunged after the tax on stock trades was tripled on May 30 to cut speculation.

Chinese companies have sold more than 130 billion yuan worth of shares in Shanghai and Shenzhen this year. Ping An Insurance (Group) Co (stock code: 601318), the nation's second-largest insurer, in February raised 38.9 billion yuan in the largest domestic share sale this year.