Poly Real Estate to issue bonds as profits soar

Property developer Poly Real Estate Group has received approval to offer up to US$626.3 million in five-year convertible bonds to repay loans and boost cash supplies, Reuters reported. The approval was announced as Poly estimated that net profits for the first half of 2008 jumped 220%-270% despite property market weakness. The company did not provide an explanation for the rise. The company’s first-quarter profits rose 253% over the same period a year ago, to US$40.3 million. Poly will release its full earnings report next month. Chinese-listed firms are required to make preliminary estimates if earnings are expected to swing by more than 50%.