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

This post was originally published on this site

https://i-invdn-com.investing.com/trkd-images/LYNXMPEH9A01T_L.jpg

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

Evergrande’s financial woes deepened in September, as the developer, wrestling with debts of more than $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.