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Shares of Chinese mainland property developers stage a strong rally in Hong Kong, with KWG Group surging more than 18%, Times China up 15.5%, Logan Group up more than 14%, Sunac China up nearly 13%, PowerLong up 9.7%.
Some cities recently released further policy easing to support the housing market. Qingdao city on Friday lowered downpayment ratio, relaxes home resale policy in some city areas.
It’s reported that the Chinese government is working on a new basket of measures to support the property market after existing policies failed to sustain a rebound in the ailing sector.
Regulators are said to be considering cutting the down payment in some non-core neighbourhoods of major cities, lowering agent commissions on transactions and further relaxing restrictions for residential purchases. The government may also refind and extend some policies laid out in the 16-point rescue package rolled out last year.
Gosen Securities said in a note that, although the recovery in the real estate market remained weak in May, the recovery trend will not change, and quality developers’ sales have hit the bottom.
