Vanke to issue US$1.3bn in new shares

China Vanke, the country's largest listed real estate developer, plans to raise as much as US$1.3 billion through a new share sale, Bloomberg reported. A total of 317.2 million shares – 20% of the company's existing capital – will go on offer on August 24, priced RMB31.53 (US$4.15) each. The proceeds will be used to fund new residential projects in Guangzhou, Hangzhou and Shanghai, with Vanke hoping to take advantage of strong housing prices. Residential real estate prices in China's 70 major cities posted their biggest increase in almost two years last month. Poly Poly Real Estate, China's second-largest developer by market value, is also preparing to issue shares.