Property Stocks Up After Share Financing Rules Eased

"); jQuery("#212 h3").html("

Related News Programmes

"); });

2022-10-21 HKT 15:08

Share this story

facebook

  • Mainland authorities will allow certain companies with small property interests to raise money by selling A-shares. File photo: AFP

    Mainland authorities will allow certain companies with small property interests to raise money by selling A-shares. File photo: AFP

China's property shares jumped on Friday after state media said authorities will ease share financing rules for certain real estate-related firms, fuelling hopes of more measures to aid the sector.

The China Securities Regulatory Commission will allow certain companies with small property interests to raise money by selling A-shares, but the proceeds cannot be invested in the real estate business, China Securities Journal reported.

For eligible companies, real estate must not be their core business, and should not contribute more than 10 percent of their profit, according to the article.

China has barred its property firms or property-related firms from financing via the domestic A-share market since end-2018, including both IPOs and additional or follow-up share sales.

Some companies with real estate-related businesses, including Zhongtian Financial Group, Jinan High-tech Development and Shenzhen New Nanshan Holding Group, saw their shares surge above 5 percent.

Analysts say the move could aid companies which are having difficulty obtaining financing via other channels, and allow them to invest in other areas of the economy.

China's central bank and banking regulator have taken steps to ease liquidity pressure in the property sector, where many companies are suffering from slumping investment and sales.

Beijing is also seeking to stabilise markets during the ongoing communist party congress. (Reuters)

RECENT NEWS

US Stocks Rise On Hopes Of Pause In Rate Increases

Wall Street stocks finished solidly higher on Thursday, reflecting better sentiment on the US economy and a consensus vi... Read more

China's Financial Risks 'controllable': Regulators

The head of the National Financial Regulatory Administration on Thursday told a high-profile forum in Shanghai that the ... Read more

Banks Cut Yuan Deposit Rates, Could Boost Consumption

China's biggest banks on Thursday said they have lowered interest rates on yuan deposits, in actions that could ease pre... Read more

Cheese And Wine Put EU, Australia Deal In Peril

Australia on Thursday threatened to walk away from a blockbuster free trade deal with the European Union unless its prod... Read more

US Stocks End Mixed As Tech Shares Are Sold Off

Gains by industrial companies lifted the Dow on Wednesday, while weakness among technology shares pushed the Nasdaq deci... Read more

Amazon 'plans Prime Video Streaming Service With Ads'

Amazon.com is planning to launch an advertising-supported tier of its Prime Video streaming service, the Wall Street Jou... Read more