Chinese property developers are extending gains in the A-share market, with an index tracking the sector compiled by Wind Information gaining 1.5%, making it one of the best-performing sectors in the A-share market.
Several developers including Risesun Real Estate Development, Beijing Dalong Weiye Real Estate Development, Jinke Property, Tianjin Jinbin Development, jiangsu Zhongnan Construction and Tianjin Realty Development surging by the daily limit of 10%.
Seazen Holdings, a private Chinese property developer, plans to issue no more than 850 million yuan of medium-term notes, the first batch this year, according to a stock exchange filing. The full amount of the bond will have “unconditional, irrevocable joint-liability guarantees” from state-owned China Bond Issuance, it said.
Last week, Xinhu Zhongbao, another private property developer, successfully issued 700 million yuan of MTNs which carried the similar guarantees from the China Bond Issuance. The issuance marks the first of such guaranteed bonds by private property developers after Country Garden issued a total of 1.7 billion yuan of guaranteed MTNs in May.
The Chinese government is considering relaxation on home-buying restrictions in major Chinese cities, which would remove the measures that have suppressed housing demand in Beijing and Shanghai for years, Bloomberg News reported.
CICC said that the continued cooling trend in the real estate sector has fuelled expectation for a new round of policy stimulus and meanwhile, property developers’ stocks are supported by low valuations.
The possibility of a nationwide real estate easing in mainland China is on the rise due to weaker-than-expected property sales and a pullback in property prices and a reduction in the down-payment ratio for property purchases will likely be the first step, said JPMorgan.
