Recently, JAVY’s executive director Ge Youshan Esq. commented on the recent trend of real estate equity financing, while interviewed by the Securities Daily.
As Mr. Ge pointed out, most of the aforementioned equity financing would be realized via private placement, which is usually a more efficient & simpler method. Also, private placement can provide real estate developers adequate channels of funds, yet it won’t directly increase the debt scale of those companies, thus becomes a preferred method to improve the balance sheet of the real estate industry.
Mr. Ge also pointed out, the newly recruited funds will be mostly used to ensure timely deliveries of presold homes. Again, among those developers that had adopted the method of private placement, Fuxing, Huafa and Worldbest saw the opportunity of restructuring, to better suit the orientation of latest housing policy.
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