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CSRC Backs Real Estate Refinancing For First Time In 12 Years

CHINA PRESS
MNI (Singapore)

China will allow qualified property developers to restructure with listed companies in the real estate sector, and these listed companies are allowed to issue shares or pay cash to purchase property assets, in a bid to support developers' ability to refinance, Yicai.com reported citing a statement on the website of China Securities Regulatory Commission. CSRC had suspended approval for restructuring and refinancing by developers since 2010 and the relaxation of these conditions will be a great boon, the newspaper said citing analysts. Funds raised should be used to replenish cash flow and for debt repayment, rather than land acquisition or developing new housing projects, the statement said. Listed real estate companies can also refinance in a non-public manner, with funds raised to be used in ensuring the delivery of unfinished housing projects, the statement added.

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