Chinese property developers continue to rally on policy easing

 

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Chinese property developers continued to rally on Tuesday, with R&F Properties surging more than 18% in Hong Kong, Greentown China up more than 13%, Sunac China and Country Garden up more than 12%, Logan Group surging 9.6%.

In the A-share market, an index tracking the real estate development sector, compiled by Wind Information, surged 2.8%, making it one of the best-performing sectors. 

The China Securities Regulator Commission (CSRC), the country’s top securities regulator, announced several measures to boost the stock marking. Of those measures, it will restrict refinancing by companies whose share prices have dropped below IPO prices, P/B ratio below 1, posted continuous operating losses and the proportion of financial investment is too high, but it noted that listed real estate companies won’t be subject to the restrictions.

Last Friday, China unveiled a further easing of its mortgage policies to support the housing market. Local governments can scrap a rule that disqualifies people who’ve ever had a mortgage – even if fully repaid – from being considered a first-time homebuyer in major cities. Read more ..