The recovery of the real estate market is often preceded by improvements in financing conditions. As financial support policies for the property sector continue to take effect and long-term safeguard mechanisms are gradually refined, developers are gaining access to more diverse financing channels. Financing volumes are also growing steadily, with fresh capital continuously flowing into the industry.
Huafa股份 recently announced plans to raise up to 3 billion yuan through a private placement to its state-owned controlling shareholder in Zhuhai, earmarked for real estate project development. The issuance price is set at 4.21 yuan per share, based on the average trading price over the 20 days preceding the pricing benchmark date. The total number of shares to be issued will not exceed 713 million, representing no more than 30% of the total share capital prior to the issuance. Upon completion, Huafa Group and its concert parties will collectively hold a 44.11% stake.
Prior to Huafa股份, Poly Development also unveiled a new financing initiative. On December 12, 2025, Poly Development released a plan to issue convertible corporate bonds to specific investors in 2025. According to the plan, the company intends to issue convertible bonds with a total value not exceeding 5 billion yuan, comprising no more than 50 million bonds. The coupon rate will be determined through a competitive bidding process.
In fact, since the second half of 2025, financing volumes for property developers have shown signs of bottoming out and stabilizing. Coupled with the密集 rollout of new financing policies in early 2026, the industry's financing environment continues to improve, effectively meeting reasonable financing demands.
Data from CRIC statistics show that the cumulative financing volume for 65 typical developers reached 414.314 billion yuan for the full year of 2025. In December 2025, domestic debt financing for developers amounted to 11.938 billion yuan, while offshore debt financing reached 4.04 billion yuan. Asset-backed security financing totaled 8.1 billion yuan, a month-on-month increase of 35.5%.
Current financing channels for developers, both domestically and internationally, indicate that besides regular corporate bond issuances, instruments such as convertible bonds, private placements, and overseas credit bonds have largely resumed. As risks in the real estate market near their end, supported by financing, the market is expected to stabilize.
Financing channels are becoming more accessible. Huafa股份's private placement is the first such case by a developer this year. The proceeds will be entirely allocated to project construction. According to the announcement, after deducting issuance costs, the net amount will be fully used for projects including the second phase of Zhuhai Huafa Urban Construction International Coastal Garden, Shaoxing Financial Vitality City, Chengdu Yue Tian Fu, Hangzhou Wu Yu Lin Chen Yuan, and several phases of the Chengdu Jin Chen Yuan project, among others.
Huafa股份 stated that the core value of this placement lies in the 4.21 yuan per share pricing, which helps avoid dilution of minority shareholders' equity. The injection of 3 billion yuan in funds will directly supplement cash flow for core project development, ensure the advancement of key projects, optimize the capital structure, reduce leverage pressure, and solidify the company's dual-drive model of "development + operation."
Apart from Huafa股份, Poly Development also announced a convertible bond financing at the end of last year. According to its announcement, it plans to raise up to 5 billion yuan through a private placement of convertible bonds to specific investors. The net proceeds, after deducting issuance expenses, will be entirely used for projects including Hangzhou Poly Tian Yi, Shijiazhuang Poly Yu Hua Tian Jun, and Guangzhou Poly Chen Yuan Hu Jing, among others.
The total investment for these projects amounts to 22.221 billion yuan, with the raised funds intended to cover 5 billion yuan. Poly Development indicated in its feasibility report that the funded projects have strong market prospects and economic benefits, which will enhance market competitiveness and serve the interests of the company and all shareholders.
The diversification of financing channels for domestic developers benefits from policy support. In offshore markets, some developers that have passed their peak debt repayment periods are regaining investor favor. On January 30, Dalian Wanda Commercial Management Group successfully issued 360 million USD in senior secured US dollar bonds with a coupon rate as high as 12.75%.
Regarding the bond's term, it features a 2NC1.5 structure: "2N" signifies an original maturity of two years from issuance, i.e., February 5, 2028; "C1.5" grants the issuer an early redemption option, allowing full principal repayment 1.5 years after issuance (August 5, 2027) to terminate the bond contract.
Market subscription enthusiasm exceeded expectations. The final subscription amount reached 650 million USD, covering 43 investment accounts with a coverage ratio of over 1.8 times, reflecting market recognition of its short-term repayment security.
An offshore market私募investor noted that Wanda's bond, with its short duration and high interest rate, has attracted some high-yield bond investors. This also indicates a shift in risk appetite among such investors, as during the market's weakest periods, offshore high-yield bonds from developers were difficult to issue.
Parallel to the full activation of financing channels, the scale of developer financing is also improving. In the first 11 months of 2025, total bond financing for real estate enterprises reached 550.28 billion yuan, a year-on-year increase of 10.5%. In terms of financing structure, credit bond financing accounted for 320.20 billion yuan, a slight increase of 2.9% year-on-year, representing 58.2% of the total. Offshore bond financing amounted to 16.15 billion yuan, surging 141.0% year-on-year.
Regarding financing costs, the average cost of new bond financing for 65 typical developers in 2025 was 2.89%, down 0.04 percentage points from 2024. Offshore bond financing costs stood at 6.21%, up 2.03 percentage points from the full year of 2024, while domestic bond financing costs were 2.55%, down 0.36 percentage points from 2024.
On debt resolution, data from the China Index Academy shows that as of December 2025, 21 distressed developers had completed or obtained approval for debt restructuring or reorganization, resolving累计debt totaling 1.2 trillion yuan and involving total liabilities exceeding 2 trillion yuan. Industry risks are being rapidly addressed.
These developments highlight that the easing of financing for developers is closely linked to the combined efforts of regulators and the market. In late January, reports emerged that several developers were no longer required to report the "three red lines" metrics monthly to regulators. Although this requirement naturally concluded in June 2023 upon completion of its phased任务, the confirmation of this news at this time helps boost market confidence.
An anonymous property analyst mentioned that based on interactions with developers, there remains strong confidence for the year. Adjustments to project白名单extensions at the beginning of the year, along with other positive news, are circulating simultaneously. Developers generally believe the industry may bottom out and stabilize in 2026.
Li Yujia, Chief Researcher at the Guangdong Urban Planning Institute's Housing Policy Research Center, suggested that after industry adjustments and the exit of high-risk enterprises, remaining developers are focusing on delivering high-quality "good houses" while ensuring project completion. Among them are high-quality developers with stable operations, controllable risks, and good reputations. At this stage, it is crucial to encourage financial institutions to support real estate financing to avoid a negative cycle where lack of financial support leads to funding strains, forced price cuts, weakened expectations, and declining sales.
The CITIC Securities research team recently stated that overall, the real estate market in 2026 has a foundation to stop declining and stabilize. Price stabilization is also key to repairing developers' balance sheets.
Their analysis pointed out that the household sector's cash flow statements remain healthy, and the macroeconomy is robust, providing a basis for the potential continuous recovery of net operating cash inflows for businesses. "With policies actively promoting the stabilization of residential prices and the appreciation of commercial real estate assets, we believe the main credit risks in the real estate sector are receding. As the primary source of financing cash inflows shifts from credit bonds to project financing, the mismatch between corporate assets and liabilities is being resolved."