Five Things to Know About Lifting the Ban on Chinese Developers’ Share Sales

By Wang Juanjuan, Yue Yue, Chen Bo and Kelsey Cheng

Chinese regulators have lifted a longstanding ban on equity financing, allowing real estate companies to raise money on the Chinese mainland and Hong Kong stock markets by selling shares through private placements for specific purposes. Photo: VCG

China has reopened the door to stock markets for the country’s cash-strapped property developers, in the latest attempt to revive a battered sector that’s been a drag on economic growth amid a slump in new-home sales and a flood of bond defaults.

Regulators have lifted a longstanding ban on equity financing, allowing real estate companies to raise money on the Chinese mainland and Hong Kong stock markets by selling shares through private placements for specific purposes such as debt repayment and acquisitions.