BEIJING Oct 29 Chinese property developers'
credit quality is improving, signalled by rebounding sales and
the ability of companies to tap international capital markets to
raise funds, ratings agency Moody's Investors Service said on
China has waged a two-year long campaign to stamp out
property speculation by restricting purchases and cool towering
prices, putting a crunch on developer finances.
Property prices and sales, though, appear to have been
revived by Beijing's recent moves to ease monetary policy to
help shore up economic growth, creating a positive knock-on
effect for capital raising.
"Capital raisings in the offshore bond market are credit
positive for some developers as they have accordingly managed to
improve their liquidity and debt maturity profiles," Kaven
Tsang, a Moody's Vice President, said in a news release on
Moody's said capital raising in the offshore bond market by
Chinese developers reached $1.15 billion in October, up 35
percent from September's $850 million.
It added that the total amount of bonds issued by Chinese
developers reached $2.32 billion in July-October, increasing
from $2 billion in the first half of this year.
China's home prices are expected to experience mild
year-on-year declines in the near-and medium-term due to
increasing supply and continued government controls, Moody's
The ongoing decline in prices and deteriorating balance
sheet liquidity for some developers continue to exert near-term
pressures, it added.
Home prices in China were broadly flat last month from
August, calculations based on official data showed, halting two
months of upticks in a sign that government efforts to maintain
strict controls on speculative activity are
Premier Wen Jiabao said earlier that the government will
keep restrictions on the real estate market.
(Reporting By Xiaoyi Shao and Nick Edwards; Editing by Kim