China’s efforts to spur asset sales by cash-strapped developers are starting to gain momentum with a flurry of deals involving state-run rivals, potentially easing the industry’s debt crisis.
In recent days, stressed property firms Agile Group Holdings Ltd. and Shimao Group Holdings Ltd. have announced sales of stakes in companies to state-owned enterprises to raise cash. Regional lender Shanghai Pudong Development Bank Co. priced a bond to help fund loans for mergers and acquisitions in the sector, and at least two state-owned developers announced plans to issue such M&A notes.
