Chinese property developers rally as authority unveils further easing of home mortgage policies

 

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Shares of Chinese property developers outperformed on Friday on expectation of more supportive policies to shore up the struggling housing market. 

An index tracking the sector compiled by Wind Information gained 1.34%, making it one of the best-performing sectors in the A-share market and compared to 0.59% loss for the benchmark Shanghai Composite Index .

Several developers including Guangzhou Pearl River Development, Beijing Zodi Investment, Metro land Corporation surged by the daily limit of 10%.

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, according to a notice released by the Ministry of Housing and Urban-Rural Development, the People’s Bank of China and the National Administration of Financial Regulation. 

City governments can have leeway on whether to adopt the policy, it said.

The country’s top housing official last month urged financial regulators and lenders to strengthen efforts to revive the property sector, calling for homebuyers who had paid off previous mortgages to be considered as first-time purchasers.

As of August 22, Chinese local governments have released more than 40 real estate policy adjustments in August, already higher than the monthly average in May – July, according to China Index Academy.