(Yicai Global) Dec. 6 -- Chinese real estate developers listed on the Shanghai Stock Exchange raised a stable sum of CNY255.3 billion (USD40.1 billion) via corporate bonds and asset-backed securities during the first 10 months of this year.

Non-state-owned firms made up almost 40 percent of the total value, China Securities Journal reported yesterday, citing a bourse insider.

Linking borrowing to underlying assets is trending amid the country's tight real estate regulation. Developers' bond financing prominently improved, according to the report.

Non-state-owned real estate developers, including Logan Group, Longfor Enterprise Development, Newhope Real Estate, the property arm of New Hope Group, and Country Garden, have initiated the issuance of corporate bonds and ABS.

Many state-backed developers, including Poly Developments and Holdings, Shanghai Lujiazui Finance & Trade Zone, and China Jinmao Holdings Group, issued supply chain-based asset-backed securities and commercial mortgage-backed securities last month.

The latest incident in the liquidity crisis of China Evergrande Group has limited impacts on China's bond market, several industry professionals said to China Securities Journal. China Evergrande failed to fulfill its USD260 million warranty obligation, which could accelerate the maturity of its debts at the request of its creditors, the Shenzhen-based firm recently said in a filing with the Hong Kong Stock Exchange.

A group of private developers is planning on taking advantage of their supply chains to secure financing. Country Garden and Newhope Real Estate are about to issue supply chain-based ABS in mid-December. Chongqing-based Longfor Group affiliate intends to issue such a product next January. The underlying assets of these financial products are accounts receivable and claims of the firms' upstream suppliers.

Some of this year's ABS issuers rely on their retail property cash flows to be able to borrow more. Yanlord Land, Midea Real Estate Holding, and Xinhu Zhongbao have launched commercial mortgage-backed securities and real estate investment trust-like products that draw their repayments from revenue generated by office buildings and hotels in first- and second-tier cities.

Meanwhile, Newhope Real Estate and Logan Group have issued ABS that are based on accounts receivable with the major sources of repayment being property buyers' mortgages and housing provident fund loans.

Editor: Emmi Laine, Xiao Yi