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Celine Sun

Sunac China Holdings dropped more than 8 per cent yesterday after announcing a plan to sell shares to raise funds for development and working capital.
The shares fell 8.6 per cent, the largest loss in 15 months, to HK$6.57 yesterday before closing at HK$6.65, down 7.5 per cent.

The Tianjin-based property developer said in a filing to the Hong Kong stock exchange yesterday that it planned to place 300 million shares at a price of HK$6.7 each.
The proceeds of about HK$2 billion would be used to optimise the company's capital structure.
The stock is now headed for the biggest drop since October 2011.
The share placing came unexpectedly as Sunac's chairman, Sun Hongbin, told media in Shanghai early this month that the company had no plans to sell shares for the moment.
Separately, Fujian-based property developer Yuzhou Properties Company is also planing to place around 166 million shares at a price range fromHK$2.4 to HK$2.5 per share, aiming to raise up to HK$416 million, according to a term sheet obtained by the Post.
Bank of China International will be the sole bookrunner and placing agent for the deal, which is expected to be settled by this Friday.
"We are not surprised to see some cash-stretched developers tap the equity market," a Nomura Equity Research report said.
"The equity placement concern will likely exert some downside pressure on the share price performances of the China property sector in our view."
On Monday, four mainland property companies, including China Aoyuan Property Group, China SCE Property Holdings, Central China Real Estate and Future Land Development Holdings, announced bond issue plans to raise funds from the stock market.
Evergrande Real Estate Group, the mainland's biggest property developer by area sold last year, plans to sell up to one billion new shares at HK$4.35 to HK$4.50 each.
Some analysts said many mainland property developers intended to speed up flat sales as the property market had been warming up since the second half of last year.
Their demand for funds to increase land reserves has resulted in frequent fundraising activities in the market.
"The liquidity that drove housing prices higher in the second half of 2012 should continue to do so in the first half of this year, with tier-one cities' housing prices potentially rising much higher," Du Jinsong, an analyst at Credit Suisse, said.


Sunac China fundraising plan pushes down stock

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Mainland property developer falls after it unveils plan to sell shares to raise capital


Sunac China fundraising plan pushes down stock

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Mainland property developer falls after it unveils plan to sell shares to raise capital

Mainland property developer falls after it unveils plan to sell shares to raise capital