The Wall Street Journal
Chinese property developers are turning to a new source of cash—backdoor listings in Hong Kong—in response to restrictions on raising funds on the mainland and a tough market for initial public offerings in the territory.
At least seven Chinese real-estate companies, including the state-owned conglomerate Greenland Holding Group Co., have taken this route since early 2012, buying majority stakes in Hong Kong-listed companies in order to gain access to global capital markets.
“Onshore equity and bond markets remain shut for Chinese developers,” Bei Fu, an analyst at Standard & Poor’s, wrote in a recent research note, referring to a crackdown by Beijing on fundraising by real-estate companies following sharp increases in housing prices. “As a result, more companies have come to Hong Kong to secure funding.”