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在线翻译:
szdaily -> Business
Developers look for alternative fundraising strategies
    2017-May-9  08:53    Shenzhen Daily

PROPERTY developers in China are on the hunt for onshore or offshore funding alternatives in anticipation of further government measures to rein in soaring house prices.

“We don’t expect any policy loosening this year. The operating environment will become more challenging, especially for small players. Only those with financial strength can survive the downturn,” said Derek Zen, an executive director at property developer Road King Infrastructure.

The latest drive to tame the property market began last September. Since then, more than 45 cities have introduced home purchase restrictions in the form of larger down payment requirements and higher mortgage rates, as well as restrictions on non-local and second-home buyers.

Authorities have also tightened requirements for bond issues and barred access to the banking system for developers buying land.

The effective closure since last October of the stock exchange bond markets in Shanghai and Shenzhen is forcing many developers to raise funds offshore in the form of U.S. dollar bonds or syndicated loans.

Some developers are even diversifying into Hong Kong property projects. Road King has re-entered the Hong Kong market after several years of absence, in part because of the restrictions on the mainland.

Other mainland companies, including HNA Group, KWG Property Holding and Logan Property Holdings, have recently won bids for high profile residential projects in Hong Kong.

“We want to have more balanced businesses between the mainland and Hong Kong,” said Zen.

While some developers are looking offshore, others are seeking onshore alternatives, such as asset-backed notes and medium-term notes issued on the interbank bond market.

Shimao Property Holdings announced April 26 that mainland subsidiary Shanghai Shimao International Plaza had received a quota to issue within two years ABNs (asset-backed notes) of up to 6.5 billion yuan (US$943 million) in the interbank bond market. The securities will be backed against income of the subsidiary’s commercial properties.

Despite repeated efforts to cool down the housing market, average new home prices in China’s 70 major cities rose 0.6 percent in March from February, faster than the previous month’s reading of 0.3 percent, according to Reuters calculations based on data from the National Bureau of Statistics.(SD-Agencies)

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