Orient Securities, China's eighth-largest brokerage by profits, has applied for a $4bn (€2.8bn) initial public offering, joining a queue of Chinese securities firms planning to list as the industry funds the expansion of its underwriting, derivatives trading and private equity businesses.

The successful $3.3bn initial public offering of Citic Securities last month has sparked a flurry of new listing applications by Chinese securities firms. Orient is planning to sell $4bn of A-shares later this year. It is one of a number of Chinese brokerage firms that is taking advantage of the favourable market conditions to raise capital for domestic expansion.