Guangzhou Zhujiang Brewery is planning to raise up to CNY2.21bn (US$350m) via a share issue in order to expand capacity in China's growing beer market, according to local reports.

Guangzhou Zhujiang Brewery intends to use the funds raised to expand production capacity at its Nanshu brewery in Guangzhou province and its Meizhou brewery in Hunan province, according to local reports, which cited a company filing. The brewer is 24%-owned by Anheuser-Busch InBev

China's beer market has continued to expand strongly, according to the latest available figures. In October, Tsingtao Brewery said that the country's beer market increased by 8.6% in volume for the first nine months of 2011. 

However, concerns about the Chinese economy have grown. In November, SABMiller's joint-venture in the country, China Resources Enterprise, said: "The uncertainties surrounding the global economy have affected consumer sentiment in China, which in turn has put pressure on the Group's consumer goods business in the near term."