Chinese property developers continue to rally as market sentiment improves

 

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Shares of Chinese property developers continue to rally on Tuesday amid improving market sentiment, with an index tracking the sector compiled by Wind Information surging by 1.8% as of 10:06 am local time, making it the best-performing sector in the A-share market.

It’s reported by mainland news outlets that construction at some previously stalled property projects have recently resumed amid joint efforts by local governments, financial institutions and property developers. For instance, some of China Aoyuan’s projects in Zhengzhou, Henan province, and Xi’an, Shanxi province, have been resumed.

An increasing number of local governments including that in Nanning, Xuzhou and Yulin have actively responded to home buyers of stalled projects and pledged to make an all-out efforts to resume construction, according to public informaiton.

China is planning to set up a real estate fund that could be worth up to 300 billion yuan ($44.39 billion) to support more than a dozen property developers, including embattled China Evergrande Group, financial information provider REDD reported on Monday, citing sources.

In addition, the China Real Estate Association, together with the real estate industry association in East China’s Zhejiang province, will hold a special session on July 26 – 27 to build connect between property developers’ distressed projects and financial institutions, in a efforts to address property developers’ difficulties.

More Chinese local governments on Monday relaxed property curbs to support the struggling market. Zhangshu city, central China’s Jiangxi province, will offer subsidies to homebuyers, property brokers and lower down payment requirement. Read more …

In addition, Tanzhou city, Zhejiang province, will raise the maximum amount homebuyers can borrow from the Housing Provident Fund and lower the downpayment requirement ratio. Luzhou city, Sichuan province, will also lower downpayment requirement ratio for homebuyers who borrow from the Housing Provident Fund. Read more …