Four Chinese property developers namely Hubei Fuxing Technology, Shimao Group and Xinjiang Beixin Road & Bridge and Xiamen C&D have come forward to issue shares after the relaxation in policy regarding developers’ equity financing. Among the planned issuers, Hubei Fuxing Technology aims to raise funds from a private placement of 30% of its share capital about 35 investors. The funds raised will be used to improve capital structure, ease liquidity and stabilize its finances. Shimao said it plans to raise funds not exceeding 30% of its current capital base. Raymond Cheng, managing director of CGS-CIMB Securities said, “We expect more developers to launch restructuring plans or include equity refinancing into their strategies in the next one or two months.”
Shimao’s dollar bonds were trading ~1.5 points higher at 9-10 cents on the dollar.
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