Realty firms' share issues put on hold (2)

08:12, April 28, 2010      

Email | Print | Subscribe | Comments | Forum 

They also said banks can refuse loans to people buying third houses in areas with high property prices.

Since then, one government agency after another has released matching regulations.

On April 25, the CSRC and the MLR announced that the two agencies will jointly approve stock issue plans by real estate companies, including initial public offerings (IPOs).

Fund-raising proposals submitted to the CSRC by 45 companies face a longer waiting time now that the MLR has joined the screening process.

MLR officials specializing in land price matters are playing a major part in the screening process, China Daily has learned. And few - if any - companies are likely to get the green light, analysts said.

Su Xuejing, analyst at Changjiang Securities, said the policy change makes it "extremely difficult" for developers to issue stocks any time soon.

In the long run, the joint screening by the CSRC and the MLR could become part of the regulatory regime, he said.

Asked to assess the impact of the tightening guidelines, Li Jianfeng, analyst at Shanghai Securities, said he believes developers will suffer an industry-wide slowdown, but in the short term, most will hold up well thanks to remarkable sales growth last year.

Li asked investors to avoid real estate stocks, even though prices have dropped markedly.

Dong Xian'an, analyst at Industrial Securities, said the tightening policy will help bring down housing prices in some places but cautioned that some major developers will be negatively affected.

Cao Xute, analyst at Sinolink Securities, noted that while large developers come under central government scrutiny, smaller developers may raise money locally.

Source: Xinhua
【1】 【2】

(Editor:赵晨雁)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • On Sept. 26, a resident passes by a flower terrace decorated for the coming National Day. (Xinhua/Hang Xingwei)
  • The photo, taken on Sept. 26, shows the SWAT team ready for the joint exercise. (Xinhua/Wangkai)
  • Two metro trains in Shanghai collided Tuesday afternoon, and an identified number of passengers were injured in the accident, the Shanghai-based eastday.com reported. Equipment failures were believed to have caused the crash on the Line 10 subway, Xinhua quoted local subway operator as saying.
  • An employee at a gold store in Yiwu, located in east China's Zhejiang province, shows gold jewelry on Monday.(Xinhua/Zhang Jiancheng)
  • Tourists ride camels near China's largest desert lake Hongjiannao in Yulin, north China's Shaanx Province, Sept. 24, 2011. Hongjiannao is shrinking as a result of climate change and human activities, and may vanish in a few decades. Its lake area, which measured more than 6,700 hectares in 1996, has shrunk to 4,180 hectares. Its water level is declining by 20-30 centimeters annually and its water PH value has risen to 9.0-9.42 from 7.4-7.8. (Xinhua/Liu Yu)
  • Actors perform royal dance at the Gyeongbok Palace in Seoul, Sept. 27, 2011. A ceremony commemorating the 38th South Korea Sightseeing Day was held in Gyeongbok Palace on Tuesday. (Xinhua/He Lulu)
Hot Forum Discussion