Developer Shimao Plans Private Share Sale as Regulators Ease Off

In July, Shimao, whose projects included five-star hotels in Shanghai, defaulted on a $1 billion dollar bond amid an industrywide liquidity crunch. Photo: VCG

Shimao Group Holdings Ltd. (600823.SH/0813.HK) has disclosed plans to sell new shares to as many as 35 investors, just one day after China’s securities regulator eased decade-old restrictions on equity financing for the industry.

The debt-ridden Chinese luxury developer said the stock issued through the private offering will not exceed 30% of its existing share capital, according to a Tuesday filing to the Shanghai Stock Exchange.

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