[photopress:BeijingCapitalLand.gif,full,alignright]Beijing Capital Land Ltd, one of the city’s largest landowners, obtained $123 million in a share sale in Hong Kong. Richard Taylor, head of equity capital markets at CLSA Asia Ltd said the money will be used to finance projects the company is building and to buy more land.
This coincides with a statement by the National Development and Reform Commission which said real estate investment growth in China accelerated in the first nine months of the year. Property investment rose 24.3 per cent, 2.1 percent, indicating government cooling measures have yet to take effect.
China has imposed new taxes, tightened lending and restricted foreign investment this year after property prices jumped more than 10 per cent in cities such as Beijing.
The government is concerned surging prices may lead to a collapse that could cause an abrupt slowdown in the world’s fastest-growing major economy. Property prices in China have more than doubled since 2000. In the country’s 70 major cities, property prices rose 5.5 per cent in the third quarter year-on-year, according to the commission, China’s top economic planning agency. This leads to the next story which deals, yet again, with the desire of the government to cool down the over-heated property market.
Source: China Daily