China Merchants Property squeezes price of proposed share sale

The offering price is reduced by 27%, but the cut may not be enough for the $753 million placement to go through.

China Merchants Property Development, a subsidiary of China Merchants Group, which is seeking to raise fresh funds through a private placement, has reduced its offering price by nearly 27%, citing the recent crash in property stock prices and Beijing's tightening policies to curb the country's overheated housing market. At the revised price, the Shenzhen-listed developer could raise Rmb5.15 billion $753 million.

The placement was first announced in July last year but the deal has been grounded ever since as the issuer wouldn't lower the offering price amid a volatile market and the Chinese authorities have been cautious in approving the developers' fundraising plans.

The price cut may seem like a big discount, but may...

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