China to suspend capital raising by property firms

BEIJING: China will place a moratorium on capital raising by real estate firms as part of a broader campaign to rein in property price rises, state media reported on Wednesday, April 28.

The move could stand in the way of about 110 billion yuan ($16.1 billion) in share issues planned by 45 companies, unnamed sources close to the China Securities Regulatory Commission told the China Daily.

The suspension will allow the Ministry of Land and Resources to examine whether companies have used illegal methods to manipulate market prices, the newspaper said.

Beijing, wary of an asset bubble forming, has been trying to cool the real estate market, raising mortgage rates and down payments for second homes and pushing local governments to control speculative buying.

Share prices of Chinese property firms have tumbled over the past week, dragging down the main stock index in Shanghai to its lowest level in more than half a year. -- Reuters