Abney Associates advising investors on the recent developments in Chinese property sector as refinancing legislative changes alter renewed share offers.
“With all signs pointing to the Chinese Government allowing key changes in financial legislation, all eyes are on property developers as they announce major share issues to underwrite large projects. The main targets of investor interest are Shenyang based Sundy Land Development Co. and China Merchants Development Co. , two of the largest such companies in the Peoples Republic of China,” explained James Carter, Senior Vice President of Mergers and Acquisitions at Abney Associates.
Sundy Land has hinted their intentions to offer a private placement parcel with a valuation of some 1.5 billion Yuan ($245 million), the capital from which will be used in construction of two large housing projects. This news follows last week’s announcement by Xinhu Zhongbao Co. of their decision to raise 5.5 billion Yuan in private placement trading in order to fund several large-scale real estate projects.
“This is all coming together at an ideal juncture for the Chinese property market, the Government’s decision to alter financing laws will allow the first inflow of such capital since 2010 and with the surge in developments already in ground breaking stages, shareholders are feeling optimistic. The business is there, they just needed the capital to fully exploit the opportunities,” added another Analyst at Abney Associates.
With the P.R.C’s Politburo recently indicating their commitment to a “strong and stable” domestic property market, one of the first companies to act has been China Merchants who signaled their intentions early on to utilize any capital raised in their ongoing property acquisition and expansion drive. China Merchants is already the China’s third largest developer by share valuation and is expected to gain significantly from this freeing of funding. With the markets reacting positively across the board on these developments, the forerunner amongst investors was Sundy Land gaining 8.9% in trading.
“The Chinese property market is rather unique in the world, even when deemed to be flat its rate of growth is often higher than smaller economies during boom times. With so many large-scale developments in play, this influx of capital will make for some very exciting times for investors. The key components are to identify the companies best poised to capitalize on this opportunity. We will continue to monitor Sundy Land and other related companies on our client’s behalf as they have all the early indicators of being sound investment vehicles to achieving future wealth,” concluded James Carter, Senior Vice President of Mergers and Acquisitions at Abney Associates.
Abney Associates are a Hong Kong based company that provides a range of financial services to individual clients, portfolio companies, corporate investors and entrepreneurs who wish to take unbiased financial advice.
Abney Associates are primarily a team of financial specialists who pride themselves on having a high level of expertise and vast experience for diligently monitoring any positive or negative developments to companies currently listed on exchanges globally, especially those that may affect client investment interests. This is done in order to ensure the financial advice given is factually correct and delivered in an effective way.