The securities regulator on Monday lifted a ban on equity refinancing for listed property companies, as authorities stepped up measures to loosen the sector's stifling liquidity squeeze.

Developer Hubei Fuxing Science and Technology Co announced a similar move on Tuesday.

Shimao aims to raise funds from 35 investors by a private placement of shares to "improve capital structure, ease liquidity difficulty and stabilize financial conditions," the developer said in a filing late on Tuesday.

The proceeds would be used to ensure it could hand over properties to buyers and to repay some debts and replenish working capital, it added. Cash-strapped Chinese developers have been unable to complete many homes for customers.

The fund raising target will not exceed 30% of the current capital base, said Shimao, which has a market value of around 10.2 billion yuan ($1.43 billion).

Shanghai-based Shimao first missed a public offshore bond obligation in July and became the first major Chinese developer to begin negotiating restructuring terms with creditors.

(Reporting by Xie Yu; Editing by Sumeet Chatterjee and Bradley Perrett)

By Xie Yu