Two developers to issue non-public offerings

Two listed property companies announced non-public offering plans on Friday to finance new projects.

Shanghai-listed Xinhu Zhongbao Co Ltd said in a statement to the Shanghai Stock Exchange that it would issue up to 5.5 billion yuan ($897 million) worth of private placement to no more than 10 investors. The raised funds will be used on two property projects in Shanghai, the statement said.

In a separate notice to the Shenzhen Stock Exchange, Guangdong Highsun Group Co Ltd revealed a plan to issue 834 million yuan in private offerings. Among which, 584 million yuan will be spent on developing an automobile exhibition trading center in Guangzhou, and the remaining 250 million yuan will be used to ease liquidity.

In July, several A-share listed property companies suspended trading due to planned major events. Insiders said that these companies were making preparations for their refinancing or restructuring once the current property developers' financing policy is adjusted.