Cover Story: China’s Share Markets Back on the Fundraising Menu for Ailing Developers (Part 2)

By Chen Bo, Wu Xiaomeng, Huo Kan, Wang Juanjuan, Niu Mujiangqu, Liu Ran, Zhang Yuzhe and Han Wei

In the first quarter 2021, the outstanding value of Chinese developers’ overseas bonds reached a record high of $269.4 billion, compared with $91 billion at the end of 2014.

China is reopening the door to the domestic stock market to cash-strapped property developers by lifting a 12-year ban on share sales in yet another major bid by policymakers to pull the ailing real estate sector out of a slump that has seen sales fall off a cliff and a flood of defaults.

The measure will allow listed builders to raise funds through domestic share sales for debt repayments and acquisitions, according to a Monday announcement by the China Securities Regulatory Commission (CSRC). The statement said the policy adjustment will take effect immediately.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS