Developer chooses bonds over banks

Shenzhen-listed developer China Vanke said it would not be stopped by Beijing's tighter credit policies targeting the property sector and would start diversifying project financing by selling corporate bonds and borrowing from foreign institutions. Vanke Chairman Wang Shi said it was prudent for the company to reduce its dependence on bank borrowing because there was always a risk lenders would suddenly stop lending. In July, the company raised nearly RMB 2 billion issuing a five-year convertible bond. Wang also revealed Vanke has a US$35 million loan with Germany's Hypo Real Estate Bank International.