The company will issue approximately 489 million shares, representing 5.6% of its current share capital, at a price of HK$2.465 per share. Sunac aims to use the proceeds primarily to manage its onshore corporate bonds, which have had their payment deadlines extended to the end of 2024.

“The board believes the placing and subscription will help the group find better solutions for its onshore public bonds,” Sunac said in a statement.

In August, Sunac reported a half-year loss of 14.96 billion yuan, largely due to the ongoing housing market slump.

China’s property sector has been under severe stress since 2021, following regulatory measures aimed at curbing developers' excessive leverage, triggering a liquidity crisis across the industry.(ET)