Chinese Property Stocks Drop as Funding Concern Mounts
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Chinese property shares fell to an eight-month low as Industrial Bank Co.’s suspension of mezzanine financing for developers fueled speculation lenders may pare real-estate funding.
The Shanghai Property Index lost 2.1 percent to close at 2,997.56, the lowest level since June 26 and extending its 5.4 percent slump yesterday. The Fuzhou city-based bank is delaying loans for property-related projects until the end of March as it prepares a new set of internal guidelines for credit allocation, it said in a statement to the Shanghai Stock Exchange yesterday.