At least four developers are rushing to the market to raise funds in what is likely to be the first wave of stock placements, after Chinese regulators lifted a six-year ban on equity financing to rescue the industry, reports the South China Morning Post.
Hubei Fuxing Technology, Shimao Group and Xinjiang Beixin Road & Bridge, which have been reported to have some liquidity problems, released their share placement plans late on Tuesday. Xiamen C&D announced its plan on Wednesday.
The move comes after the China Securities Regulatory Commission (CSRC) announced a five-point policy late on Monday to address the liquidity issues of indebted Chinese developers. The measures, which also include mergers and acquisitions, restructuring and private share placements, apply to companies listed on mainland Chinese markets and in Hong Kong.