China property M&A deals pick up in relief for developers

n 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 (SOEs) to raise cash.

BEIJING: 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 (SOEs) to raise cash. Regional lender Shanghai Pudong Development Bank Co priced a bond to help fund loans for mergers and acquisitions (M&As) in the sector, and at least two state-owned developers announced plans to issue such M&A notes.