"If Baosteel is purchaseing 20m shares were do they come from ."

They come from Treasury of course. At the difference of a transfer of shares (tru the Exchange, or from person-to-person), when shares are issued to a purchaser, the money is paid directly to the Company. So you're right, the other shareholders are 'diluted' as regards to the number of shares, but really, if we take a 'photograph' right there, the other shareholders have 90,1 % of the pre-issuance value of the company + 17,4 MM$ of new cash in the coffers, so nothing gained nor lost... And at todays price, we may say that we are somewhat 'richer' now than before the issuance to Baosteel because the 17,4 MM$ is still there and has not moved a penny compared to the market capitalization which has dropped 25% since the the Baosteel entrance!!! Only on paper, obviously.

GLTA.

BaBe