China Property Shares Soar on Fundraising Support

It was on 29th, Tuesday, Chinese property developers' bonds and shares surged after regulators eased a ban on equity refinancing for listed firms, the biggest support measure for a sector that has been squeezed for cash and that has been a key pillar of the world's second-biggest economy.

According to analysts, this move will make it easier for developers to get new funding but restoring demand from homebuyers is still challenging amid continuous COVID-19 restrictions that have led to unusual street protests across many cities in China.

The bonds and shares soared after the China Securities Regulatory Commission (CSRC) on Monday said it would widen equity financing channels, including private share placements for developers listed in Hong Kong and China, thereby lifting a ban that has been in place for many years.

This move is the most recent regulatory easing as China increases support for the property business, a sector that accounts for 25% of the Chinese economy. Many developers have halted construction and defaulted on debt obligations.

Additionally, on Tuesday Hubei Fuxing Science and Technology Co said was planning on launching a private placement of shares to finance real estate development. This was the first China-listed developer that announced a move of this type after the ban was lifted.