2007 has been a big year for many Chinese stock investors. It has also been a big year for many real estate developers. Many real estate companies' stock prices have soared after becoming listed companies. Their objective is pretty obvious--financing.
Going public has proven to be an effective measure to increase capital value. Country Garden and SOHO China are the two examples.
Secretary General of the Ninth Beijing Real Estate and Construction Technology Exhibition, Shan Dawei, says going public is a good choice for many property developers.
"Nowadays, financing options for real estate developers are comparative simple. They mainly rely on loans from banks. Going public is a trend for many developers. It can better solve their financing problems."
Fu Li Cheng Real Estate went public in Hong Kong in 2005. Hong Kong's international financing market has provided them with sufficient capital to support their nation wide development plans.
Zhang Hui is the general manager of Beijing Fu Li Cheng Real Estate Corporation.
"Real estate development is like a capital operation game when your business gets into a certain level."
Zhang Shun is the director general of Zhong Ti Olympics Garden.
"When going public, a huge amount of money from investors goes to the listed company. The company may use the money to push forward the next phase of their real estate project, so as to achieve sustainable development."
The real estate industry doesn't look all that optimistic due to macro control and adjustment. But most of property developers believe this is just short-term effect. Real estate still stands in the spotlight for stock investors.
E Junyu is with Beijing Yi Cheng Real Estate.
"If an outstanding company is accepted by the capital market, the capital market will surely reward the company with more investment."