Beijing Yanjing Brewery has had to review the price of its planned private share placement due to the ongoing economic downturn, according to local reports.

The South China Morning Post said yesterday (30 October) that the brewer, which initially announced the plan in January, will lower the price for a second time, down to CNY10 per share from CNY17.88. In May, Beijing Yanjing moved to cut its initial proposal of CNY20.95 per share.

The brewer now hopes to raise CNY1.34bn (US$195.1m) from the placement of up to 110m shares, pending regulatory approval. The funds will be used to build 11 new facilities, including a raw material processing plant in Xinjiang and in Inner Mongolia.

In a filing to the Shenzhen stock exchange, company secretary and deputy general manager, Liu Xiangyu, said: "The market changes very fast, and with our share price turning relatively low now, the China Securities Regulatory Commission is paying more attention to the offer price, so we will scale back."

Beijing Yanjing is the last remaining major independent brewer in China. Speculation over the last couple of years has linked InBev to the company, although nothing has materialised as yet between the two.