CIFI Holdings on Tuesday became the latest Chinese property developer to raise funds by selling new shares at discounted prices, while Agile Group announced its second such capital raising since November, reports Reuters.
After a raft of government measures supported their share prices, a number of developers including heavyweights like Country Garden have since November turned to top-up share placements.
The method, in which a controlling shareholder sells existing shares and then the company issues the same amount of new shares to them, allows funds to be raised without any large dilution in stake for the controlling shareholder.