Listed mainland developers turn to cheap onshore bonds for relief

At least 30 developers whose share prices are plunging on mainland exchanges are preparing to issue bonds onshore with record-low interest rates, South China Morning Post reported, citing Powerlong Real Estate president Hoi Wa-fong, who added that his own firm would submit an application to issue bonds soon. The turn to debt from equity comes after the reopening of domestic bond markets to developers last year and the central bank’s four interest rate cuts in the last seven months. “The bond market offers another channel for developers to raise funds, which is positive for their long-term outlook,” said analyst Yi Huaqiang at Huarong Securities.