China Merchants Shekou becomes first mainland property developer to get approval for onshore equity financing after ban lifted last Dec

 

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Chinese state-owned property developer China Merchants Shekou Industrial Zone Holdings said that it has received approval from the China Securities Regulatory Commission (CSRC) to issue new shares.

That represents the first onshore equity fundraising by a mainland developer since the government lifted a ban on such fundraising activities in November 2022. China had imposed a ban on listed property developers’ onshore equity financing since 2015 in order to prevent the proceeds from being used for land acquisitions.

China Merchants Shekou is the sixth largest mainland developer in terms of property sales so far this year and the company last December applied to the Shenzhen Stock Exchange for the new share issuance.

Currently, at least five Chinese property developers plan to conduct similar equity financing, most of which are state-owned developers and awaiting for CSRC’s approval.