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Poly Real Estate share sale cleared by SASAC
By Nie Peng (chinadaily.com.cn)
Updated: 2010-04-20 13:50
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Poly Real Estate, the country's second largest property developer, announced Monday that its plan to raise nearly 10 billion yuan ($1.5 billion) through a non-public share sale has been given the green light by China's State-owned assets watchdog and now awaits approval from the top securities regulator.
The Shanghai-listed Poly Real Estate plans to sell new shares at 17.92 yuan apiece to raise as much as 9.6 billion yuan for the development of 12 projects, and its parent China Poly Group has promised to buy shares worth 100 million yuan to 1.2 billion yuan, according to the report.
The plan has passed the review by the State-Owned Assets Supervision and Administration Commission (SASAC) under the State Council, and is yet to get approval from shareholders at a meeting slated for later this month and from the China Securities Regulatory Commission (CSRC), the report said.
Just on April 17, the State Council, China's Cabinet, released new rules to curb the soaring property prices in Chinese cities.
The new rules forbid commercial banks to extend loans for new property projects developed by real estate companies which hoard land or conduct speculative land transactions.
Securities regulators were also told halt approvals for such developers' IPO, refinancing or major assets restructuring plans.
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However, a senior real estate analyst said Poly Real Estate will not get the go-ahead from the CSRC any time soon, according to the paper.
Also, analysts with some brokerages say this year's property sales are likely to shrink by 40 percent over 2009, and listed real estate companies, including Poly Real Estate, may delay new projects according to market conditions.
China Vanke, the country's largest property developer by market value, submitted in August a plan for a 11.2-billion-yuan share sale to replenish funds for 14 housing projects as well as the company's working capital, but has not received any feedback from the Ministry of Land and Resources so far, the paper said, citing management sources.
