Why has China Resources Land (CHINA RES LAND) recently engaged in large-scale financing? What trends are emerging in the overall financing landscape of property developers?
On November 17, China Resources Land announced the completion of a placement of 49.5 million shares in China Resources Mixc Lifestyle Services (CHINA RES MIXC), raising approximately HK$2.061 billion net. Earlier, on November 14, the company issued two green bonds offshore—one worth RMB4.5 billion and another worth $300 million—marking its first offshore bond issuance in six years. According to incomplete statistics, among 65 major property developers from January to October 2025, China Resources Land ranked first in public market financing.
**1. China Resources Land Leads Developers in Financing, Setting a New Annual Record** With relatively smooth access to capital markets in 2025, China Resources Land significantly increased its financing efforts. In the first 10 months, its public market financing reached RMB54.613 billion, topping the list among key developers. Moreover, its financing volume during this period already surpassed the full-year totals for 2023 and 2024. Including November’s additional financing of around RMB8.2 billion, the company’s public market financing exceeded RMB60 billion, hitting a record high since 2013.
The proceeds from these financing activities are allocated to three main areas: - **Debt Refinancing**: With RMB25.358 billion in maturing debt in 2025, part of the funds is used for debt restructuring and repayment. For example, RMB1.8 billion from a RMB3 billion medium-term note issued in June was earmarked to repay short-term debt. - **Core City Projects**: The company invested RMB62.7 billion in new land reserves, including major projects in Shanghai, Shenzhen, and Beijing. - **Asset Management and Operations**: Its asset management scale grew by RMB21.4 billion compared to the beginning of the year.
Amid a slowing property market, China Resources Land is securing high-quality projects while maintaining debt repayment capabilities and fostering business transformation.
**2. State-Owned Enterprises Dominate Financing, Supporting Land Market and Industry Upgrades** Beyond China Resources Land, state-owned enterprises (SOEs) are the primary drivers of real estate financing. Since the 2021 liquidity crisis, financing has diverged sharply: SOEs, backed by stable leverage and government support, account for over 75% of financing, while private developers represent less than 7%.
This disparity directly impacts land acquisitions. Among the top 100 developers by new land reserves in 2025, SOEs secured 81.1%, whereas private developers held only 12.1%. With stronger financial backing, SOEs dominate prime urban land, stabilizing the market and leading industry upgrades.
For instance, China Overseas Land (not mentioned in symbols) allocated RMB3 billion from bond proceeds to residential projects in Beijing and Shenzhen, advancing its quality housing standards. Similarly, Poly Real Estate entered the non-residential leasing market, shifting toward operations.
As financing, land purchases, and sales increasingly concentrate in SOEs, the sector’s risk resilience improves, steering it toward stability. SOEs are spearheading urban renewal, affordable housing, and premium developments, while private developers must reposition post-risk clearance to adapt to industry changes.
Looking ahead, sustained SOE investments in commercial operations, green buildings, and smart communities will shape a sustainable "development + operation + service" model for real estate.
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