China’s property shares surge as investors bet on stimulus hopes
2023.06.06 01:14
© Reuters. FILE PHOTO: A woman walks near a construction site of apartment buildings in Beijing, China, July 15, 2022. REUTERS/Thomas Peter/File Photo/File Photo
HONG KONG (Reuters) – China property stocks listed in Hong Kong jumped nearly 8% on Tuesday as investors clung to hopes that Beijing would roll out supportive measures soon to bolster the embattled sector.
Shares of major developer Longfor Group surged 11% while defaulted peers Sunac China and KWG Grouop gained 12% and 18.6%, respectively, versus a 1.2% rise in the broader .
Investors’ hopes to see further national stimulus policies increased last Friday after several second-tier cities announced their own supportive measures.
The property sector, once a pillar of economic growth, slumped sharply last year with developers defaulting on debt or bonds and suspending construction of presold housing projects.
Policymakers have rolled out measures since the second half of 2022 to stabilise the property market that has been further boosted by the lifting of tough COVID-19 curbs in December.
Potential measures could include lower down-payment and home purchase requirements, and refined measures to boost developers’ liquidity, analysts have said.
Property stocks listed in mainland China posted modest gains on Tuesday, with the CSI 300 Real Estate Index rising 2.3%.
