Shanghai International Port (Group) Co (SIPG) has raised its stake in Bank of Shanghai by subscribing to 100m shares worth RMB1.6bn ($261.1m).

Bank of Shanghai is seeking to raise up to RMB11.6bn in private placements to no more than 200 shareholders, in a deal that would boost the bank’s capital adequacy ratio.

SIPG announced to the stock exchange that the investment in Bank of Shanghai would generate stable returns in the long run and help to diversify its business.

At present, SIPG owns 6.34% stake in Bank of Shanghai, making it the third largest shareholder of the bank.

Meanwhile, SIPG recorded 26.45m teu of container throughput at Shanghai port in the first three quarters of 2014, representing an increase of 5.1% compared to the same period of last year.