New Various methods developers to reap public funds to finance their property projects. More recently, a number of developers China announced it would resume sales of its shares on the stock. It is at the same time as the government signaled that they will continue refinancing for property projects.
Sundy Land Investment Co., a developer based in Shenyang, plans to raise as much as 245 million U.S. dollars (USD 2.6 billion) private placement to finance two residential projects. While China Merchants Property Development Co., the country's third-largest developer by market value, plans to sell shares to buy assets.
Likewise with Xinhu Zhongbao Co.. Last week, the developer is also officially announced its plans to increase the private placement of 5.5 billion yuan ($ 9.1 billion) to finance two property projects.According to Haitong International Securities Group Ltd., the sale is expected to reinforce expectations that the regulator will reduce restrictions on fundraising by the developer. In addition, it can also nourish and stabilize the property market development. Because, on July 30 last, the Communist Party Politburo for the first time not to mention further tightening restrictions.
"These companies have to accept some signs that the government will gradually reduce refinancing for developers, if not, they will not announce the plan. This will be good news for the property industry because of the availability of more options to lower the cost of funds for developers," Hugo said Hou, Haitong.
Only, all of the share sale plan Xinhu, Sundy Land, and China Merchants Property will require Chinese regulatory approval. Therefore, the country has yet allows developers to collect money by selling shares since 2010.
This is corroborated by the statement of an official Securities Regulatory Commission that the government's attitude towards refinancing the developer has not changed.
Sundy Land Investment Co., a developer based in Shenyang, plans to raise as much as 245 million U.S. dollars (USD 2.6 billion) private placement to finance two residential projects. While China Merchants Property Development Co., the country's third-largest developer by market value, plans to sell shares to buy assets.
Likewise with Xinhu Zhongbao Co.. Last week, the developer is also officially announced its plans to increase the private placement of 5.5 billion yuan ($ 9.1 billion) to finance two property projects.According to Haitong International Securities Group Ltd., the sale is expected to reinforce expectations that the regulator will reduce restrictions on fundraising by the developer. In addition, it can also nourish and stabilize the property market development. Because, on July 30 last, the Communist Party Politburo for the first time not to mention further tightening restrictions.
"These companies have to accept some signs that the government will gradually reduce refinancing for developers, if not, they will not announce the plan. This will be good news for the property industry because of the availability of more options to lower the cost of funds for developers," Hugo said Hou, Haitong.
Only, all of the share sale plan Xinhu, Sundy Land, and China Merchants Property will require Chinese regulatory approval. Therefore, the country has yet allows developers to collect money by selling shares since 2010.
This is corroborated by the statement of an official Securities Regulatory Commission that the government's attitude towards refinancing the developer has not changed.
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