Economy

China suspends real estate co restructing approvals

(Agencies)
Updated: 2010-11-26 11:15

The China Securities Regulatory Commission has suspended vetting of restructuring applications from real estate companies and tightened approvals of fundraising plans, the Shanghai Securities News reported on Friday, citing Vice-Chairman Zhuang Xinyi.

Shanghai to boost its M&A market Related readings:  Beijing to ban developers from accepting pre-sale funds  Trial property tax may be levied by March  Investors urged to look at commercial real estate  Ready consumer cash fueling robust sales

Property developers applying for initial public offerings, additional fundraising, or restructuring now needed approval from the Ministry of Land and Resources to ensure such moves were line with government real estate policy, the newspaper reported.

No restructuring applications from property companies had been approved by the CSRC this year, the report said.

The central government has banned loans for third homes, raised mortgage rates, and curbed lending to developers as it clamps down on real estate speculation after a surge prices triggered fears of social and financial instability.