Measures to facilitate real estate equity launched

China has allowed listed real estate enterprises to resume refinancing as well as mergers and acquisitions on Monday as part of a policy package to stabilize the real estate sector with more accommodative equity financing conditions.

Listed companies that engage in real estate business can resume mergers and acquisitions and relevant financing activities, effective from Monday, the China Securities Regulatory Commission said in a statement.

Eligible real estate enterprises are allowed to carry out reorganizations and get listed, while those already listed can refinance via non-public offerings to ensure the delivery of housing projects underway, the CSRC said.

"The steady and healthy development of the property market has a bearing on financial market stability and overall economic and social development," the commission said in the statement.

Real estate enterprises listed in Hong Kong are also allowed to resume refinancing activities as their A-share counterparts, the statement said, adding the commission is supportive of the issuance of real estate investment trusts or REITs that support affordable housing projects.

Yan Yuejin, director of the Shanghai-based E-house China Research and Development Institution, said the latest move marked the official launch of measures to stabilize real estate financing on the equity financing front alongside those to support credit expansion and bond financing announced earlier.