Property developer China Vanke said it planned to raise up to US$1.6 billion in a share sale to fund developments in Shenzhen, Guangzhou and Tianjin, Bloomberg reported. US$1.34 billion will be used to fund 14 residential projects, while US$272 million will be used for working capital. Investors did not welcome the news given uncertainty over the outlook for China’s real estate market, and concerns that the government could tighten lending, analysts said. Vanke’s shares closed down 2.3% to RMB10.70 (US$1.56) in Shenzhen yesterday. Easy bank lending had helped to lift Vanke’s property sales by 32% in the first half over the same period last year.
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