SHANGHAI, March 20 Two Chinese property
developers said they have received regulatory approvals to make
private placements of shares, paving the way for more real
estate firms to raise funds after a near four-year ban by
authorities on real estate companies from seeking new financing.
Chinese developers Tianjin Tianbao Infrastructure Co.
and Join.In Holding Co., received
regulatory approval to sell yuan-denominated A shares in private
placements, according to separate statements to Shanghai and
Shenzhen stock exchanges.
The latest approvals, which come amid growing fears of
defaults in the property sector after the collapse of Zhejiang
Xingrun Real Estate, will pave the way for more developers to
raise capital and alleviate crash crunches.
China stopped allowing developers to raise money by selling
shares in April 2010 on concerns that surging home prices were
inflating an asset bubble.
The Shanghai Securities News reported on Thursday more than
30 listed property firms have submitted proposals to raise a
total of 90 billion yuan since the second half of last year.
Government officials told Reuters on Tuesday that Zhejiang
Xingrun Real Estate Co, based in the coastal city of Ningbo in
Zhejiang province, is on the brink of bankruptcy. State media
have estimated the company owes 15 domestic banks 2.4 billion
yuan ($387.32 million) and individual investors another 1.1
billion, with only 3 billion yuan of assets on hand.
News of the expected bankruptcy came amid growing concerns
about debt in China following the country's first domestic bond
default earlier this month.
Data released on Tuesday showed that Chinese home inflation
slowed for a second straight month in February, due to
government policy curbs and declining domestic demand. Some
markets saw outright price declines, in particular the Zhejiang
cities of Wenzhou and Ningbo, where Zhejiang Xingrun is based.
($1 = 6.1965 Chinese Yuan)
(Reporting by Fayen Wong; Editing by Eric Meijer)