New Opportunities for IPOs Attract Property Developers

飞雪寒冰

"I would not have offered such a high price had it not been for the sake of getting listed. I was crazy at that time," Zou Xichang, board chairman of Changsheng China Property Company Limited (Changsheng) told Caijing during an interview August 6.

Zou's "high" offer refers to his land purchase for Zhongshan Plaza in Guangdong Province, which can also be interpreted as the costs of a futile IPO attempt.
　
The first property developer failing in an IPO in 2008, Zou had not repaid all the related debt until two months ago. He was forced to lease out a 60,000 square meter shopping mall located in downtown Guangzhou, for 14 years.

"When the shopping mall returns to my hands, I will be 60 years old，" Zou sighed: "Why did I rush into a trendy IPO? I had only done several projects. The lesson was costly and painful." Zou said that he would not consider attempting a future listing.

Many other real estate developers once shared Zou's failures and pain, but have rebuilt their confidence. As China's real estate market has bottomed out with a V-shaped curve, overseas investors have become more and more optimistic. In Hong Kong, average price/earning ratios for listed real estate companies have rocketed back above 10 percent again. As financial markets thaw, some debt-ridden real estate companies are aspiring for IPOs again. Foreign investment banks betting on these companies are also expecting a considerable return on their investment.

飞雪寒冰

"I would not have offered such a high price had it not been for the sake of getting listed. I was crazy at that time," Zou Xichang, board chairman of Changsheng China Property Company Limited (Changsheng) told Caijing during an interview August 6.

Zou's "high" offer refers to his land purchase for Zhongshan Plaza in Guangdong Province, which can also be interpreted as the costs of a futile IPO attempt.
　
The first property developer failing in an IPO in 2008, Zou had not repaid all the related debt until two months ago. He was forced to lease out a 60,000 square meter shopping mall located in downtown Guangzhou, for 14 years.

"When the shopping mall returns to my hands, I will be 60 years old，" Zou sighed: "Why did I rush into a trendy IPO? I had only done several projects. The lesson was costly and painful." Zou said that he would not consider attempting a future listing.

Many other real estate developers once shared Zou's failures and pain, but have rebuilt their confidence. As China's real estate market has bottomed out with a V-shaped curve, overseas investors have become more and more optimistic. In Hong Kong, average price/earning ratios for listed real estate companies have rocketed back above 10 percent again. As financial markets thaw, some debt-ridden real estate companies are aspiring for IPOs again. Foreign investment banks betting on these companies are also expecting a considerable return on their investment.

飞雪寒冰

"I would not have offered such a high price had it not been for the sake of getting listed. I was crazy at that time," Zou Xichang, board chairman of Changsheng China Property Company Limited (Changsheng) told Caijing during an interview August 6.

Zou's "high" offer refers to his land purchase for Zhongshan Plaza in Guangdong Province, which can also be interpreted as the costs of a futile IPO attempt.
　
The first property developer failing in an IPO in 2008, Zou had not repaid all the related debt until two months ago. He was forced to lease out a 60,000 square meter shopping mall located in downtown Guangzhou, for 14 years.

"When the shopping mall returns to my hands, I will be 60 years old，" Zou sighed: "Why did I rush into a trendy IPO? I had only done several projects. The lesson was costly and painful." Zou said that he would not consider attempting a future listing.

Many other real estate developers once shared Zou's failures and pain, but have rebuilt their confidence. As China's real estate market has bottomed out with a V-shaped curve, overseas investors have become more and more optimistic. In Hong Kong, average price/earning ratios for listed real estate companies have rocketed back above 10 percent again. As financial markets thaw, some debt-ridden real estate companies are aspiring for IPOs again. Foreign investment banks betting on these companies are also expecting a considerable return on their investment.

飞雪寒冰

"I would not have offered such a high price had it not been for the sake of getting listed. I was crazy at that time," Zou Xichang, board chairman of Changsheng China Property Company Limited (Changsheng) told Caijing during an interview August 6.

Zou's "high" offer refers to his land purchase for Zhongshan Plaza in Guangdong Province, which can also be interpreted as the costs of a futile IPO attempt.
　
The first property developer failing in an IPO in 2008, Zou had not repaid all the related debt until two months ago. He was forced to lease out a 60,000 square meter shopping mall located in downtown Guangzhou, for 14 years.

"When the shopping mall returns to my hands, I will be 60 years old，" Zou sighed: "Why did I rush into a trendy IPO? I had only done several projects. The lesson was costly and painful." Zou said that he would not consider attempting a future listing.

Many other real estate developers once shared Zou's failures and pain, but have rebuilt their confidence. As China's real estate market has bottomed out with a V-shaped curve, overseas investors have become more and more optimistic. In Hong Kong, average price/earning ratios for listed real estate companies have rocketed back above 10 percent again. As financial markets thaw, some debt-ridden real estate companies are aspiring for IPOs again. Foreign investment banks betting on these companies are also expecting a considerable return on their investment.

飞雪寒冰

"I would not have offered such a high price had it not been for the sake of getting listed. I was crazy at that time," Zou Xichang, board chairman of Changsheng China Property Company Limited (Changsheng) told Caijing during an interview August 6.

Zou's "high" offer refers to his land purchase for Zhongshan Plaza in Guangdong Province, which can also be interpreted as the costs of a futile IPO attempt.
　
The first property developer failing in an IPO in 2008, Zou had not repaid all the related debt until two months ago. He was forced to lease out a 60,000 square meter shopping mall located in downtown Guangzhou, for 14 years.

"When the shopping mall returns to my hands, I will be 60 years old，" Zou sighed: "Why did I rush into a trendy IPO? I had only done several projects. The lesson was costly and painful." Zou said that he would not consider attempting a future listing.

Many other real estate developers once shared Zou's failures and pain, but have rebuilt their confidence. As China's real estate market has bottomed out with a V-shaped curve, overseas investors have become more and more optimistic. In Hong Kong, average price/earning ratios for listed real estate companies have rocketed back above 10 percent again. As financial markets thaw, some debt-ridden real estate companies are aspiring for IPOs again. Foreign investment banks betting on these companies are also expecting a considerable return on their investment.

飞雪寒冰

"I would not have offered such a high price had it not been for the sake of getting listed. I was crazy at that time," Zou Xichang, board chairman of Changsheng China Property Company Limited (Changsheng) told Caijing during an interview August 6.

Zou's "high" offer refers to his land purchase for Zhongshan Plaza in Guangdong Province, which can also be interpreted as the costs of a futile IPO attempt.
　
The first property developer failing in an IPO in 2008, Zou had not repaid all the related debt until two months ago. He was forced to lease out a 60,000 square meter shopping mall located in downtown Guangzhou, for 14 years.

"When the shopping mall returns to my hands, I will be 60 years old，" Zou sighed: "Why did I rush into a trendy IPO? I had only done several projects. The lesson was costly and painful." Zou said that he would not consider attempting a future listing.

Many other real estate developers once shared Zou's failures and pain, but have rebuilt their confidence. As China's real estate market has bottomed out with a V-shaped curve, overseas investors have become more and more optimistic. In Hong Kong, average price/earning ratios for listed real estate companies have rocketed back above 10 percent again. As financial markets thaw, some debt-ridden real estate companies are aspiring for IPOs again. Foreign investment banks betting on these companies are also expecting a considerable return on their investment.

飞雪寒冰

"I would not have offered such a high price had it not been for the sake of getting listed. I was crazy at that time," Zou Xichang, board chairman of Changsheng China Property Company Limited (Changsheng) told Caijing during an interview August 6.

Zou's "high" offer refers to his land purchase for Zhongshan Plaza in Guangdong Province, which can also be interpreted as the costs of a futile IPO attempt.
　
The first property developer failing in an IPO in 2008, Zou had not repaid all the related debt until two months ago. He was forced to lease out a 60,000 square meter shopping mall located in downtown Guangzhou, for 14 years.

"When the shopping mall returns to my hands, I will be 60 years old，" Zou sighed: "Why did I rush into a trendy IPO? I had only done several projects. The lesson was costly and painful." Zou said that he would not consider attempting a future listing.

Many other real estate developers once shared Zou's failures and pain, but have rebuilt their confidence. As China's real estate market has bottomed out with a V-shaped curve, overseas investors have become more and more optimistic. In Hong Kong, average price/earning ratios for listed real estate companies have rocketed back above 10 percent again. As financial markets thaw, some debt-ridden real estate companies are aspiring for IPOs again. Foreign investment banks betting on these companies are also expecting a considerable return on their investment.

飞雪寒冰

"I would not have offered such a high price had it not been for the sake of getting listed. I was crazy at that time," Zou Xichang, board chairman of Changsheng China Property Company Limited (Changsheng) told Caijing during an interview August 6.

Zou's "high" offer refers to his land purchase for Zhongshan Plaza in Guangdong Province, which can also be interpreted as the costs of a futile IPO attempt.
　
The first property developer failing in an IPO in 2008, Zou had not repaid all the related debt until two months ago. He was forced to lease out a 60,000 square meter shopping mall located in downtown Guangzhou, for 14 years.

"When the shopping mall returns to my hands, I will be 60 years old，" Zou sighed: "Why did I rush into a trendy IPO? I had only done several projects. The lesson was costly and painful." Zou said that he would not consider attempting a future listing.

Many other real estate developers once shared Zou's failures and pain, but have rebuilt their confidence. As China's real estate market has bottomed out with a V-shaped curve, overseas investors have become more and more optimistic. In Hong Kong, average price/earning ratios for listed real estate companies have rocketed back above 10 percent again. As financial markets thaw, some debt-ridden real estate companies are aspiring for IPOs again. Foreign investment banks betting on these companies are also expecting a considerable return on their investment.

飞雪寒冰

"Domestic real estate companies always lack capital. Land and money are like flour and water. More flour requires more water, and vice versa," said Joe Zhang, deputy head of investment banking, China at UBS Investment.

New bubbles for real estate investment are looming, as a new round of capital may flood the real estate market. Though foreign capital is more cautious in this round of land development, other formidable powers are eyeing the market.

At the beginning of 2009, China's insurance law was revised to include fixed assets into the range of premium investment. Now, the market is waiting for detailed regulations governing insurance companies' investment in real estate. Jones Lang LaSalle estimated that as much as 342 billion yuan will flow into the real estate market as insurance companies are admitted. To date, insurance companies' capital approved by China Insurance Regulatory Commission (CIRC) to flow into real estate has amounted to just 20 billion yuan.