(Yicai Global) Oct. 18 -- Shanghai Shimao has been given the greenlight to issue CNY6.6 billion (USD1 billion) in corporate bonds, the largest single amount that a Chinese property developer has been allowed to leverage since July, but only 85 percent of the funds that the firm needs to repay its maturing debts, the developer said on Oct. 15.

Shimao applied in August to issue bonds worth CNY7.9 billion, the amount it needs to repay seven bonds due soon. It means that the Shanghai-based developer will have to find the other 15 percent from elsewhere.

Chinese regulators have been tightening the screws on the real estate sector since August last year in a bid to rein in excessive borrowing. Both the Shanghai and Shenzhen stock exchanges said last November that the bond issuance quota for property developers shall not be more than 85 percent of their maturing debts.

Since the fourth quarter of last year, the approved debt sales of developers has been less than their maturing debts, with bond issuance shrinking significantly, according to a China Securities’ research report. Last month, only CNY17.2 billion (USD2.6 billion) of debt was sold, a 54 percent drop year on year, and a fall of 29.7 percent from August.

Editors: Tang Shihua, Kim Taylor