China loosens developers' financing rules
Mainland permits two property companies to raise money through private placement
The mainland further loosened its grip on the financing of property companies yesterday by allowing two more firms to raise funds through private placement.
Shanghai-listed Join In said it had won formal approval to raise about 1.7 billion yuan (HK$2.1 billion) through private placement by issuing up to 180 million shares.
Shenzhen-listed Tianjin Tianbao Infrastructure was granted approval to raise 1.55 billion yuan by issuing up to 346 million non-public shares.
Both companies' shares rose by the daily limit of 10 per cent, with Join In closing at 13 yuan and Tianjin Tianbao Infrastructure at 5.74 yuan.
[Beijing is] aware that curbing financing … won’t help cap the housing price
Analysts said the move marked a significant loosening of regulations on the financing of property firms, which had been almost at a standstill since 2010.