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China's largest machine tool manufacturer, Shenyang Machine Tool Group Ltd, sold 30 percent of its equity to US-based Cornerstone Financial Company.

The deal was made in accordance with requirements of the Shanghai United Assets and Equity Exchange, on which the company offered 49 percent of its assets for sale to both domestic and foreign buyers last November, Liu Yongsheng, head of the State-owned Assets Supervision and Administration Commission in Shenyang city in Northeast China, was quoted as saying.

"We are looking for strategic investors to buy the remaining 19 percent" of the 49 percent on offer, Liu said.

The report did not say how much the company expects to raise from the sale of almost half of its equity.

Citing Guan Xiyou, general manager of the Shenyang Machine Tool, the report said the company expects to post 10 billion yuan in revenue for 2007.

Shenyang Machine Tool, which has total assets of 7.99 billion yuan, has four units, including Shenzhen-listed Shenyang Machine Tool Co Ltd.