China Developers Set Up Funds as Cash Is Squeezed Amid Curbs
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Chinese developers are setting up property funds to diversify their sources of revenue as government real-estate curbs have led to a cash shortage.
Fosun International Ltd., a Shanghai-based company with interests in property, retail, mining and pharmaceuticals, is raising money for the second phase of a property fund after getting 3.7 billion yuan ($585 million) for the first, Co-President Fan Wei said at a conference in Beijing yesterday. Sino-Ocean Land Holdings Ltd., a state-owned developer, plans to start a 1 billion yuan fund this year for mergers and acquisitions, Deputy General Manager Li Zhenyu said in an interview.