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Fundraising by China property trust products slump amid Evergrande woes - media

Fundraising by China property trust products slump amid Evergrande woes - media

FILE PHOTO: Cranes stand at a construction site near the headquarters of China Evergrande Group in Shenzhen, Guangdong province, China September 26, 2021. REUTERS/Aly Song/File Photo

SHANGHAI : Fundraising by Chinese property trust products tumbled over 40per cent in September from a month earlier, official Shanghai Securities News reported on Monday, as China Evergrande Group's troubles further dampen investor appetite toward the struggling sector.

Newly-launched real estate trust products raised 16.2 billion yuan from investors in September, down 44.8per cent from the previous month, the newspaper said, citing data from investment advisory Usetrust. That follows a 24per cent decline in August, and a 25per cent fall in July.

Evergrande's financial woes deepened in September, as the developer, wrestling with debts of more than US$300 billion, missed payments on wealth management products, commercial bills and dollar bonds.

Chinese developers are already struggling amid government's lending curbs and surging cost of bond issuance. A rapidly shrinking market of property trust products could further squeeze funding channels of a sector suffering from slower home sales.

In contrast, trust products that channel money into capital markets saw a jump in popularity and fundraising, the Shanghai Securities News said.

(Reporting by Samuel Shen and Andrew Galbraith; Editing by Shri Navaratnam)

Source: Reuters

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