Stock Market News

Chinese Property Stocks Skyrocket on More Stimulus Plans

2022.08.16 09:50

Chinese Property Stocks Skyrocket on More Stimulus Plans

By Ambar Warrick 

Investing.com– Chinese property stocks rallied on Tuesday as the government outlined more infrastructure spending to help prevent an economic slowdown. 

Hong Kong-listed stocks, including Country Garden Holdings Company Ltd (HK:2007), Longfor Properties Co Ltd (HK:0960), and China Resources Land Ltd (HK:1109) rallied between 10% and 15% after Reuters reported that the government was considering offering bond guarantees to certain property developers.

China is also planning to boost economic demand and shore up infrastructure construction in the third quarter, officials said on Wednesday. The country intends to increase the use of special local government bonds and new credit guarantees. 

Their comments come after the People’s Bank of China unexpectedly cut interest rates on Monday, as it attempts to shore up economic growth.

Weak retail sales and industrial output readings on Monday also raised concerns over slowing growth in the second-largest economy.

China’s economy barely dodged a contraction in the second quarter, as it struggles with a series of damaging COVID-19 lockdowns. Despite the economic impact of the lockdowns, Beijing appears hesitant to scale back its strict zero-COVID policy.

But this has also seen the government increase its spending on infrastructure projects- a major driver of economic growth in the country. 

According to Reuters, the country has issued most of the 3.45 trillion yuan in special bonds relegated to infrastructure projects. 

But China’s property market, which accounts for nearly a fifth of its economy, has been struggling even before the COVID lockdowns. 

A series of defaults by major developer China Evergrande Group and its peers had severely dented investor confidence in the sector, which was once widely sought after for its steep returns. 

Property developers are now also facing increased scrutiny from the populace over their solvency, which has spurred a crash in home prices.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 105,161.18 0.75%
ethereum
Ethereum (ETH) $ 3,344.81 1.45%
xrp
XRP (XRP) $ 3.13 0.80%
tether
Tether (USDT) $ 1.00 0.01%
solana
Solana (SOL) $ 258.01 3.45%
bnb
BNB (BNB) $ 690.18 1.00%
dogecoin
Dogecoin (DOGE) $ 0.354731 1.32%
usd-coin
USDC (USDC) $ 1.00 0.00%
cardano
Cardano (ADA) $ 0.987631 0.96%
staked-ether
Lido Staked Ether (STETH) $ 3,339.41 1.52%
tron
TRON (TRX) $ 0.253778 0.78%
chainlink
Chainlink (LINK) $ 25.66 2.56%
avalanche-2
Avalanche (AVAX) $ 37.70 5.90%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,982.90 1.49%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 104,779.07 0.36%
hedera-hashgraph
Hedera (HBAR) $ 0.342039 3.12%
stellar
Stellar (XLM) $ 0.42187 2.17%
the-open-network
Toncoin (TON) $ 5.10 0.82%
sui
Sui (SUI) $ 4.18 0.26%
shiba-inu
Shiba Inu (SHIB) $ 0.00002 0.24%
weth
WETH (WETH) $ 3,345.83 1.51%
polkadot
Polkadot (DOT) $ 6.35 0.49%
litecoin
Litecoin (LTC) $ 124.14 1.06%
bitget-token
Bitget Token (BGB) $ 7.73 0.33%
leo-token
LEO Token (LEO) $ 9.75 0.24%
bitcoin-cash
Bitcoin Cash (BCH) $ 443.26 1.14%
hyperliquid
Hyperliquid (HYPE) $ 24.70 10.59%
uniswap
Uniswap (UNI) $ 12.32 0.30%
usds
USDS (USDS) $ 1.00 0.04%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,537.02 1.54%
pepe
Pepe (PEPE) $ 0.000015 0.12%
official-trump
Official Trump (TRUMP) $ 31.51 11.96%
near
NEAR Protocol (NEAR) $ 5.07 2.57%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.10%
aave
Aave (AAVE) $ 331.97 0.36%
aptos
Aptos (APT) $ 8.41 3.95%
mantra-dao
MANTRA (OM) $ 4.84 38.27%
ondo-finance
Ondo (ONDO) $ 1.45 1.49%
internet-computer
Internet Computer (ICP) $ 9.20 0.80%
monero
Monero (XMR) $ 224.19 1.60%
whitebit
WhiteBIT Coin (WBT) $ 28.46 0.11%
ethereum-classic
Ethereum Classic (ETC) $ 27.09 0.68%
mantle
Mantle (MNT) $ 1.20 0.94%
vechain
VeChain (VET) $ 0.048234 0.37%
crypto-com-chain
Cronos (CRO) $ 0.138129 0.13%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.439092 1.49%
render-token
Render (RENDER) $ 7.04 2.19%
dai
Dai (DAI) $ 1.00 0.03%
algorand
Algorand (ALGO) $ 0.40896 1.57%
kaspa
Kaspa (KAS) $ 0.132869 2.23%