Grace Fabric Technology (SHA:603256) will inject 680 million yuan in capital into subsidiary Huangshi Grace Electronic Material Technology through a debt-to-equity swap, according to a Friday filing with the Shanghai bourse.

Following the capital increase, the subsidiary's registered capital will rise to 2.40 billion yuan from 1.72 billion yuan.

The capital raise will use the company's 680 million yuan debt claim against the subsidiary.

Shares rose 1% during morning trading on Friday.