China Financial Services (HKG:0605) is proposing a capital reduction to lower its paid-up share capital to nearly HK$745.3 million from HK$2.08 billion currently, a Wednesday Hong Kong bourse filing said.

The credit arising from the capital reduction will be applied to a capital reduction reserve account which will be used to eliminate accumulated losses of over HK$1.33 billion.

The capital reduction is subject to shareholder approval among other requirements.