China’s funding drought for property developers is ending as first trickle of capital arrives in 4 stock placement deals, analysts say
- ‘Equity financing is slow, but approval is being granted since May and we expect more to come,’ Guosheng Securities analysts say
- Merchants Shekou, the first developer to benefit from Beijing’s third arrow of policy support introduced last November, saw its 8.5 billion yuan share sale approved by the CSRC on June 16
Shanghai-listed Poly Development and Greattown, as well as Shenzhen-listed CCCG Real Estate and Hubei Fuxing Science and Technology have been approved by the China Securities Regulatory Commission (CSRC) to sell shares and raise capital for their property projects, according to filings made on Wednesday.
State-owned Poly Development will raise 12.5 billion yuan by selling 819 million shares to support 14 projects. Greattown, Fuxing and CCCG Real Estate plan to raise 2.55 billion yuan, 1.34 billion yuan and 3.5 billion yuan, respectively. Lujiazui Corporation, another developer, is waiting for the CSRC’s nod to raise 6.6 billion yuan.
These approvals come on the heels of China Merchants Shekou Industrial Zone Holdings’s 8.5 billion yuan share sale, which was approved by the CSRC on June 16. Merchants Shekou is the first developer to benefit from Beijing’s third arrow of policy support introduced last November.
“Equity financing is slow, but approval is being granted since May and we expect more to come,” Guosheng Securities analysts led by Jin Jing said in a note on Tuesday.
