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China Lifts Ban on Listings by Real Estate Firms
Two Chinese real estate companies issued their prospectuses Thursday, marking the lift of a seven-year ban on listings by real estate companies.
The Goldfield Industries Inc. based in the Shenzhen Special Economic Zone in south China is to issue 90 million A shares at 9.42 yuan per share in its initial public offering (IPO).
In another IPO, the Beijing Tianhong Baoye Real Estate Co. is offering 40 million A shares at 10.40 yuan per share.
Analysts here said the move will give a further boost to the capital-intensive real estate sector, which has recently begun to recover from years of poor performance.
The Chinese State Council banned listings by real estate companies in 1993 amid rampant speculations in the sector.
In 1999, the China Securities Regulatory Commission decided to lift the ban on a temporary basis, with the Shenzhen and Beijing firms recommended by the Ministry of Construction as the first two candidates for listing.
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