(Bloomberg) -- China’s securities watchdog approved an onshore share sale by a real estate developer for the first time since rules were eased late last year, raising hopes for the revival of a major fundraising channel as a housing recovery falters. 

China Merchants Shekou Industrial Zone Holdings Co. received approval from the China Securities Regulatory Commission to raise as much as 8.5 billion yuan ($1.2 billion) in a private placement, the state-owned company said in a Saturday stock exchange filing. 

The developer said in December that it planned to sell shares to companies owned by the Shenzhen municipal government, and that proceeds will be used for existing property projects and debt repayment. Shenzhen-based Merchants Shekou is the nation’s sixth-biggest developer by sales this year.

The approval marks the first since China in November ended a multi-year ban on equity fundraising in the property sector, part of a slew of measures aimed at helping cash-strapped developers withstand an unprecedented housing slump. Such sales had been restricted since 2015 to prevent real estate firms from amassing cash to buy up land. 

China’s residential property market is facing renewed downward pressure after a brief rebound earlier this year. Existing-home prices fell in May, ending three months of gains. Homeowners are slashing asking prices, underscoring waning faith that property will always be one of China’s safest investments. 

At least five other property developers plan similar fundraising, though most of them have state backgrounds. Poly Developments & Holdings Group Co. is expected to raise the most among those that have received stock exchange approvals so far. The offering is pending a nod from the CSRC. 

The recent approvals indicate that Chinese authorities are accelerating the progress of equity financing mechanisms for real estate firms, analysts at Sinolink Securities wrote in a note last week. 

--With assistance from Filipe Pacheco and Mengchen Lu.

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