Web Exclusive

China halts real estate repeat funding, reshuffling

By Gao Yuan (chinadaily.com.cn)
Updated: 2010-11-26 15:31

China has tightened controls over requests for additional funding from property developers, China Securities Journal reported Friday.

Shanghai to boost its M&A market Related readings:  Property measures inspection launched  First-time buyers are set to rejoin property game  China's trust firms halt property loans: Report  Property market set to make soft landing

Among several investment banks the newspaper interviewed, all of the property developers' requests for another round of funding have been denied, the report said, although authorities have not confirmed the approvals have been halted.

In addition, Zhuang Yixin, vice-chairman of the China Securities Regulatory Commission (CSRC), told Shanghai Securities News that restructuring of real estate enterprises have also been paused.

Real estate developers have to get approval from the Ministry of Land and Resources (MLR) before reorganization. Zhuang said that CSRC and MLR are jointly examining the restructuring requests from professional and policy perspectives.

Not a single reorganization has been permitted since the start of this year, the report said.