[photopress:hopsonaerial.jpg,full,alignright]Hopson Holdings last week raised $128 million by selling shares last week to buy land.
Interesting that Standard & Poor’s revised the company’s rating to negative from stable due to increasingly aggressive land acquisitions and slower-than-expected cash generation.
Standard and Poor’s said this rating on the company comes about because of the above-average risk facing residential property developers in China, including the cyclical nature of the market, evolving government regulations and changing policies, and strong competition.
Hopson is not the only mainland property developer raising cash to buy land. Last week, Beijing Capital Land, Shenzhen Investment and Greentown China Holdings were seeking to raise, through share placements or bond offers, a combined $578 million for land purchases.
Source: The Standard