Cash-starved Chinese property developers that were active in the US dollar market at the start of the year have now turned to the dim sum market amid improved prospects for renminbi appreciation. For these borrowers, the dim sum market offers attractive funding levels and also helps them avoid a currency mis-match.
This week, four developers Lai Fung Holdings, Golden Wheel Tiandi, Kaisa and Future Land Development tapped dim sum investors for funds. Mainland property developers have always faced constraints in raising funds onshore, so many take money off the table whenever they can.
This was reminiscient of January, when property companies stampeded the dollar market, overcrowding it...
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