Chinese property developers rally on expectation of more policy support

 

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Shares of Chinese property developers rallied in the A-shares market on expectation for more supportive policy for the struggling sector.

An index tracking the sector compiled by Wind Information rising by 1.4%, making it one of the best-performing sector and compared to 0.03% gain for the benchmark Shanghai Composite Index. Risesun Real Estate Development surged by the daily limit of 10%, CCCG Real Estate up 4.8%, Gree Real Estate up 3.9%, Beijing Capital Development up 3.4% and Seazen Holdings up 3.4%. 

In Hong Kong, mainland property developers also traded higher, with KWG Group up 6.5%, Longfor Group up 3.2%, China Vanke up 2.8% and Powerlong up 2.5%, Country Garden up 2.2%. 

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, said JPMorgan in a research note. 

A reduction in the down-payment ratio for property purchases will likely be the first step, it said.  Read more …