Chinese developers on shaky foundations

Mainland real estate companies are struggling to find sources of financing as onshore credit dwindles.

Chinese developers are looking for alternative sources of financing as onshore credit dwindles, leading to a proliferation of offshore bonds.

Real estate companies accounted for more than 70% of dollar-denominated transactions out of China in the first two months of the year, according to Dealogic, as developers sought to lock in still relatively low interest rates, extend debt maturities and raise funds for land payments.

Volumes hit $5.6 billion with 13 deals for the first two months of 2014, which is not too far from 2013’s record breaking numbers of close to $7 billion in total volume with 18 deals during the
same period.

...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222