Chinese developers turn to equity market to raise capital
Hong Kong
THE US$19.2 billion of share sales this year by Chinese developers is proving a boon for bondholders, boosting not only the indebted companies' cash levels but also their ability to repay creditors.
The equity offerings by homebuilders since Dec 31 are already more than the amount in any previous full-year period, according to data compiled by Bloomberg, and mark a shift away from a reliance on bank loans and the offshore bond market for funds. Chinese high-yield notes have gained 5.03 per cent this year versus 2.66 per cent for US dollar debentures in Asia more generally, Bank of America Merrill Lynch indexes show.
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