Private Property Developers, SOEs To Gain From Refinancing Rules

China’s move to lift a ban on equity refinancing for listed real estate firms will help ease developers’ cash flow pressures without increasing their debt burden, with high-quality leading private developers and state-owned developers capable of mergers and acquisitions likely to be the main beneficiaries, 21st Century Business Herald reported citing Chen Mengjie, analyst of Yuekai Securities. Private developers that received bank credit prior to the ban being lifted may continue to benefit, while those who have defaulted on debt may not be able to take advantage of the policy. The recent easing of real estate financing has boosted confidence in the industry, but a long-term recovery depends on a rebound in home sales, the newspaper said citing Chen.