SHANGHAI (BLOOMBERG) - The Shanghai Stock Exchange has temporarily halted approving at least some property bond sales, according to people familiar with the matter.
The people, who asked not to be identified because the suspension hasn't been disclosed, didn't have details on when the halt on the exchange-regulated notes started and when it would end.
Concerns have spread that China's real estate market is overheating. The value of homes sold jumped 61 per cent to 1.2 trillion yuan (S$247 billion) last month from a year earlier, according to Bloomberg calculations based on data released on Wednesday (Oct 19).
While the exchange-regulated bond market is smaller than the interbank note market, the move adds to fundraising challenges for developers. At least 21 cities have introduced purchase restrictions and toughened mortgage lending since late September, reversing two years of easing to support buyers.
There was no immediate reply from the Shanghai exchange to faxed questions.
One of the people familiar said they have heard from the exchange that new rules on property bond sales may be released.
The bourse was considering raising the threshold for property developers to sell exchange-traded notes, people familiar with the matter said last month.
The 21st CenturyBusiness Herald reported earlier that China exchanges had halted some property bond sales.