Chinese real estate developers seek financing in Hong Kong
By Park Sae-jin
Posted : November 13, 2012, 15:49
Updated : November 13, 2012, 15:49
Shanghai-based developer CIFI Group launched its pre-listing road show on Nov. 12, according to the Securities Daily newspaper. The company aims to raise as much as $270 million by selling about 1.3 billion shares on the Hong Kong Stock Exchange.
Future Land Development Holdings, another developer in Shanghai, also started its initial public offering (IPO) on the Hong Kong bourse. Other developers, such as Chongqing-based Forebase Group and Sincere Group, are also eying a listing in Hong Kong.
“Liquidity on the Hong Kong capital market is increasing after the U.S. announced its third round of quantitative easing, which has reduced the difficulties for mainland developers to get financing in Hong Kong,” Liu Yuan, a senior research manager at Centaline China Real Estate, told the Global Times newspaper.
According to Centaline, mainland real estate developers issued $1.25 billion worth of bonds in Hong Kong in October, up from $850 million in September.