Companies

Vanke fails in additional issue plan

By Yu Hongyan (chinadaily.com.cn)
Updated: 2010-09-16 16:29

China Vanke Co has failed in its 11.2-billion-yuan additional issue plan after it expired Wednesday and the company failed to extend the date, the Shanghai Securities News reported Thursday.

This is the second property developer to fail in its additional issue plan since September of this year, according to the paper.

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More than 20 property developers have submitted their additional issuance plans since the first half of this year, with the refinancing size amounting to hundreds of billions of yuan, but none won approval, according to the paper.

Analysts say developers are in a refinancing rush to expand further and replenish liquidity.

But the China Securities Regulatory Commission may not approve a developer's refinancing plan until China eases its property curbs, according to analysts.

The State Council, or China's cabinet, issued a notice in April to tame the country's rising housing prices. It required the CSRC to postpone approval on the listings, refinancing and restructure of property developers.

China's August housing prices rose at the slowest pace in the year, with prices in the country's 70 major cities growing by 9.3 percent year-on-year, according to the National Bureau of Statistics.