China developers selling bonds, shares

SHANGHAI: Property developer Gemdale Corp said yesterday it would raise about 20 billion yuan (US$2.6bil) selling shares and bonds – part of an unprecedented series of fund raisings in China's booming real estate sector. The scramble to raise funds reflects the breakneck growth of the property market, but it is also the result of the authorities' actions to make bank loans more expensive and difficult to obtain as they seek to cool property prices and the economy. “As China's interest rates keep rising, selling bonds will help reduce capital costs and alleviate the risks of purely relying on bank loans,” Gemdale said in a statement.