** Shares of Simcere Pharmaceutical Group 2096.HK fall 7.4% to HK$13.04, on course for their biggest one-day pct drop since June 17

** Stock hits the lowest level since August 28, and on track for a second session of decline

** Generic drug producer plans sale of 121 mln new shares to key shareholder Simcere Pharmaceutical Holding in a top-up placement of shares, raising HK$1.57 billion ($200.99 million) for R&D and working capital

** The new shares will be issued at HK$12.95 each, representing an 8.03% discount to Monday's close of HK$14.08

** Key shareholder will buy the new shares following sale of same amount of existing shares at same price to third-party investors

** The Hang Seng Biotech Index .HSHKBIO climbs 0.9%, while the benchmark Hang Seng Index .HSI slips 0.2%

** YTD, Simcere Pharmaceutical shares up 88.2%

($1 = 7.8113 Hong Kong dollars)

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))