China’s securities watchdog approved an onshore share sale by a real estate developer for the first time since rules were eased late last year, raising hopes for the revival of a major fundraising channel as a housing recovery falters.
China Merchants Shekou Industrial Zone Holdings Co. received approval from the China Securities Regulatory Commission to raise as much as 8.5 billion yuan ($1.2 billion) in a private placement, the state-owned company said in a Saturday stock exchange filing.
The developer said in December that it planned to sell shares to companies owned by the Shenzhen municipal government, and that proceeds will be used for existing property projects and debt repayment. Shenzhen-based Merchants Shekou is the nation’s sixth-biggest developer by sales this year.
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