CSRC issued guidance directing capital markets to serve as the primary channel
supporting a new real estate development model. It backs M&A and restructuring
by listed real estate developers, allowing them to acquire property-related
assets using shares, targeted convertible bonds and cash. Where assets are
bought via share issuance or targeted convertible bonds, issuers may raise
accompanying funds to finance policy-compliant property projects and to pay
transaction consideration. Listed firms in construction and other industries
closely linked to real estate should follow the same rules.